SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Earliest Event Reported: July 8, 2003
THE HALLWOOD GROUP INCORPORATED
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 1-8303 51-0261339
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation or organization) Identification No.)
3710 Rawlins, Suite 1500
Dallas, Texas 75219
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (214) 528-5588
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
On July 8, 2003, the Delaware Court of Chancery issued its decision
after remand from the Delaware Supreme Court in the litigation encaptioned,
Gotham Partners, L.P. v. Hallwood Realty Partners, L.P., et al. In the decision,
the Court of Chancery determined that defendants in the litigation were required
to pay to Hallwood Realty Partners, L.P. (the "Partnership") the difference
between the price paid for 293,539 units of the Partnership purchased by The
Hallwood Group Incorporated ("HGI") in 1995 of $14.20 per unit and the value of
those units, including the control value of those units, as determined by the
court in its decision, of $36.02 per unit, plus pre-judgment interest. The court
also determined that neither rescission nor an award of rescissory damages was
appropriate.
In an earlier decision, the court had determined that the value of the
units was $25.84 per unit and HGI had previously paid the resulting amount.
Therefore, under the latest order, HGI is required to pay an additional amount
of approximately $2,988,000, plus pre-judgment interest.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: July 11, 2003
THE HALLWOOD GROUP INCORPORATED
By: /s/ Melvin J. Melle
--------------------------------
Name: Melvin J. Melle
Title: Vice President