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Operating income loss at Hallwood Textile Products Opts
27 Nov '07
4 min read
Income Taxes.
For the 2007 third quarter, income tax expense was $75,000, which included a noncash deferred federal tax benefit of $168,000 and state tax expense of $243,000. For the 2006 third quarter, the income tax benefit of $406,000, included a noncash deferred federal tax benefit of $227,000, current federal tax benefit of $230,000 and state tax expense of $51,000.
For the 2007 nine months, the income tax benefit of $3.8 million, included a noncash deferred federal tax benefit of $4.3 million and state tax expense of $469,000. For the 2006 nine months, the income tax benefit of $48,000, included a noncash deferred federal tax benefit of $246,000, a current federal tax benefit of $230,000 and state tax expense of $428,000.
Hallwood Energy Capital Requirements.
The Company's Hallwood Energy, L.P. affiliate anticipates that it will require $30,000,000 of additional capital contributions in the fourth quarter of 2007. In November 2007, Hallwood Energy received $15,000,000 of this amount from a new equity partner.
In addition, Hallwood Investments Limited, another existing investor and the lender to Hallwood Energy entered into a letter agreement providing up to $15,000,000 of additional equity to Hallwood Energy. Hallwood Energy also anticipates that it will likely require in excess of $80,000,000 to finance its tentative 2008 operating budget and is in the process of seeking this additional capital from external sources.
Chairman and Majority Shareholder Withdraws Proposal. Mr. Gumbiner, the Company's chairman and majority shareholder, has advised the Company that, because his previously announced proposal to purchase the Company's interest in Hallwood Energy could conflict with Hallwood Energy's efforts to obtain additional capital, among other things, he has withdrawn his proposal that the board of directors consider a liquidation of the Company.
The board of directors determined that the special committee would continue to consider the Company's strategic alternatives with respect to Brookwood, however. There can be no assurance that the special committee will recommend that the Company take any action with respect to Brookwood, or that any transaction will be completed.
For the 2007 third quarter, income tax expense was $75,000, which included a noncash deferred federal tax benefit of $168,000 and state tax expense of $243,000. For the 2006 third quarter, the income tax benefit of $406,000, included a noncash deferred federal tax benefit of $227,000, current federal tax benefit of $230,000 and state tax expense of $51,000.
For the 2007 nine months, the income tax benefit of $3.8 million, included a noncash deferred federal tax benefit of $4.3 million and state tax expense of $469,000. For the 2006 nine months, the income tax benefit of $48,000, included a noncash deferred federal tax benefit of $246,000, a current federal tax benefit of $230,000 and state tax expense of $428,000.
Hallwood Energy Capital Requirements.
The Company's Hallwood Energy, L.P. affiliate anticipates that it will require $30,000,000 of additional capital contributions in the fourth quarter of 2007. In November 2007, Hallwood Energy received $15,000,000 of this amount from a new equity partner.
In addition, Hallwood Investments Limited, another existing investor and the lender to Hallwood Energy entered into a letter agreement providing up to $15,000,000 of additional equity to Hallwood Energy. Hallwood Energy also anticipates that it will likely require in excess of $80,000,000 to finance its tentative 2008 operating budget and is in the process of seeking this additional capital from external sources.
Chairman and Majority Shareholder Withdraws Proposal. Mr. Gumbiner, the Company's chairman and majority shareholder, has advised the Company that, because his previously announced proposal to purchase the Company's interest in Hallwood Energy could conflict with Hallwood Energy's efforts to obtain additional capital, among other things, he has withdrawn his proposal that the board of directors consider a liquidation of the Company.
The board of directors determined that the special committee would continue to consider the Company's strategic alternatives with respect to Brookwood, however. There can be no assurance that the special committee will recommend that the Company take any action with respect to Brookwood, or that any transaction will be completed.
The Hallwood Group Incorporated
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