HALLWOOD ENERGY CORP
SC 14D1/A, 1996-12-06
CRUDE PETROLEUM & NATURAL GAS
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                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                SCHEDULE 14D-1/A
                               (AMENDMENT NO. 2)*

                             Tender Offer Statement
      (Pursuant to Section 14(d)(1) of the Securities Exchange Act of 1934)
                                       and
                        SCHEDULE 13D/A (AMENDMENT NO. 14)
                    Under the Securities Exchange Act of 1934

                           HALLWOOD ENERGY CORPORATION
                            (Name of Subject Company)

                         THE HALLWOOD GROUP INCORPORATED
                                    (Bidder)

                          $0.50 PAR VALUE COMMON STOCK
                         (Title of Class of Securities)

                                    40636M208
                      (CUSIP Number of Class of Securities)

                                 MELVIN J. MELLE
                         THE HALLWOOD GROUP INCORPORATED
                            3710 RAWLINS, SUITE 1500
                               DALLAS, TEXAS 75219
                                 (214) 528-5588
       (Name, Address and Telephone Number of Person Authorized to Receive
               Notices and Communications on Behalf of the Bidder)

                                    COPY TO:
                              W. ALAN KAILER, ESQ.
                               JENKENS & GILCHRIST
                           A PROFESSIONAL CORPORATION
                          1445 ROSS AVENUE, SUITE 3200
                            DALLAS, TEXAS 75202-2799
                                 (214) 855-4500

                              ---------------------


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*        Constituting the final amendment to Schedule 14D-1.

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(1)      Names of Reporting Person:   The Hallwood Group Incorporated
         S.S. or I.R.S. Identification No. of Above Person:    51-0261339

(2)      Check the Appropriate Box if a Member of a Group (See Instructions)
                  (a) |_|                   (b) |_|

(3)      SEC Use Only

(4)      Source of Funds (See Instructions)                            WC

(5)      Check Box If Disclosure of Legal Proceedings Is Required
         Pursuant to Items 2(e) or 2(f)     |X|

(6)      Citizenship or Place of Organization                 Delaware

(7)      Aggregate Amount Beneficially Owned
         by Each Reporting Person                    633,917 shares

(8)      Check Box if the Aggregate Amount in Row (7)
         Excludes Certain Shares (See Instructions)           |_|

(9)      Percent of Class Represented by Amount in Row (7)             81.6%
                                                           -------------------

(10)     Type of Reporting Person (See Instructions)                   CO
                                                       ------------------



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         The  Hallwood  Group   Incorporated,   a  Delaware   corporation   (the
"Purchaser"),  hereby  amends and  supplements  its Tender  Offer  Statement  on
Schedule  14D-1 and Schedule 13D/A  (Amendment No. 12) (the "Schedule  14D-1 and
13D"),  originally  filed on October 15, 1996, and as so amended on November 22,
1996, with respect to its offer to purchase all the outstanding shares of Common
Stock, par value $0.50 per share (the "Shares"), of Hallwood Energy Corporation,
a Texas corporation (the "Company"),  not currently directly or indirectly owned
by the  Purchaser,  for  $19.50 per  Share,  net to the seller in cash,  without
interest thereon,  as set forth in this Amendment No. 2. This Amendment No. 2 to
the Schedule 14D-1 and 13D is being filed on behalf of the  Purchaser.  The item
numbers and responses  thereto below are in accordance with the  requirements of
Schedule 14D-1 and Schedule 13D, respectively, of the Securities Exchange Act of
1934,  as  amended.  Capitalized  terms not  defined  herein  have the  meanings
assigned thereto in the Schedule 14D-1 and 13D.

     This  Amendment  No. 2 to  Schedule  14D-1 also  constitutes  (i) the final
amendment to the Schedule  14D-1  pursuant to General  Instruction D to Schedule
14D-1 under the  Exchange  Act and (ii)  Amendment  No. 14 to the  Statement  on
Schedule 13D under the Exchange Act.

ITEM 6.           INTEREST IN SECURITIES OF SUBJECT COMPANY.

         On November 23,  1996,  the  Purchaser  accepted for payment a total of
87,564 Shares.

ITEM 10.          ADDITIONAL INFORMATION.

         Item 10(f) of the Schedule  14D-1 and 13D is hereby  amended to add the
following information.

         (f) The Offer  terminated  at 12:00  midnight,  New York City time,  on
Friday, November 22, 1996.


ITEM 11.          MATERIAL TO BE FILED AS EXHIBITS.

         Item  11 of the  Statement  is  hereby  amended  to add  the  following
exhibit:

         (a)(10)     Press Release issued by the Company and the Purchaser dated
November 25, 1996.



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                                    SIGNATURE

        After due inquiry and to the best of my knowledge and belief,  I certify
that the information set forth in this statement is true, complete and correct.


Dated:   December 6, 1996                   THE HALLWOOD GROUP INCORPORATED



                                            By:            /s/ Melvin J. Melle
                                                           --------------------
                                                     Name:    Melvin J. Melle
                                                     Title:   Vice President


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                                  EXHIBIT INDEX

Exhibit
Number                     Description                               Page Number

(a)(10)         Press Release issued by the Company and the Purchaser
                  dated November 25, 1996.

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                                 Exhibit (a)(10)

FOR IMMEDIATE RELEASE

THE HALLWOOD GROUP INCORPORATED                    HALLWOOD ENERGY CORPORATION
3710 Rawlins, Suite 1500                           4582 S. Ulster Street Parkway
Dallas, Texas 75219                                Denver, Colorado 80237

Contact Investor Relations:

Mary Doyle                                                    Cathleen Osborn
(214) 528-5588                                                 (303) 850-7373

Dallas, Texas,  November 25, 1996, - The Hallwood Group Incorporated  (NYSE:HWG)
and Hallwood Energy Corporation (OTC Bulletin Board: HWEC) announced today that,
in  connection  with  the  tender  offer  by  The  Hallwood  Group  Incorporated
("Hallwood Group") for all of the outstanding shares of common stock of Hallwood
Energy  Corporation  ("Hallwood  Energy")  which  expired at 12:00  midnight  on
November 22, 1996, in excess of 87,500  shares were tendered to Hallwood  Group.
The  tendered  shares  represent in excess of 11% of the  remaining  outstanding
shares of Hallwood  Energy.  As a result of these  tenders,  Hallwood  Group now
holds in excess of 92% of the total outstanding  shares of Hallwood Energy,  and
intends to  promptly  consummate  the merger of Hallwood  Energy  into  Hallwood
Group.  After  the  merger,  Hallwood  Group  will  continue  as  the  surviving
corporation.

                                      -END-

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