Item 7.01 Regulation FD Disclosure.
By a press release issued on March 2, 2009, The Hallwood Group Incorporated (the "Company") clarified that the Hallwood Energy, L.P. bankruptcy does not include the Company.
On March 1, 2009, Hallwood Energy, L.P. and certain of its affiliates filed petitions for relief under Chapter 11 of the United States Bankruptcy Code.
The Company stated that the bankruptcy filing was only by Hallwood Energy, the general partner of Hallwood Energy and Hallwood Energy's subsidiaries. The Company is only an investor in and creditor of Hallwood Energy. The bankruptcy filing does not include the Company or any other of the Company's assets. The Company continues to own Brookwood Companies Incorporated, which continues to operate in the normal course of business. Reference is made to the press release filed as Exhibit 99.1 hereto. The information set forth in Exhibit 99.1 is hereby incorporated by reference herein.
By filing this Current Report on Form 10-K, the registrant does not acknowledge that disclosure of this information is required by Regulation FD or that the information was material or non-public before the disclosure. The registrant assumes no obligation to update or supplement forward-looking statements in this statement that become untrue because of new information, subsequent events or otherwise.

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