|The Hallwood Group Incorporated (Hallwood) operates as a holding company operating in the textile products industry. Textile products operations are conducted through the Company’s wholly owned subsidiary, Brookwood Companies Incorporated (Brookwood). Brookwood is an integrated textile firm that develops and produces fabrics and related products through specialized finishing, treating and coating processes. Brookwood principally operates as a converter, finisher and laminator in the textile industry, which processes fabrics at its plants, located in Rhode Island and Connecticut, or by contracting with independent finishers. Brookwood is a coater of woven nylons in the United States. On March 1, 2009, Hallwood Energy, L.P. (Hallwood Energy), Hallwood Energy Management, LLC (the general partner of Hallwood Energy, HEM) and Hallwood Energy’s subsidiaries, filed petitions for relief under Chapter 11 of the United States Bankruptcy Code.
Brookwood produces fabrics that meet standards and specifications set by both government and private industry, which are used by military, consumer and industrial customers. As of December 31, 2009, Brookwood had two subsidiaries, Kenyon Industries, Inc. (Kenyon) and Brookwood Laminating, Inc. (Brookwood Laminating).