Hallmark Financial files for Chapter 11

Dallas-based P&C insurance company Hallmark Financial has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the Northern District of Texas.

Hallmark’s insurance company subsidiaries are not part of the proceeding and will continue to operate in the ordinary course during the restructuring process.

The agreement involves a restructuring transaction with Hildene Capital Management LLC and some of its affiliates, whose clients collectively comprise the majority holder of Hallmark’s debt obligations.

“Over the past two years, we have taken meaningful actions to address legacy challenges at our parent company, including exiting underperforming businesses and improving liquidity. With the support of our lenders, this transaction is the right next step to strengthen our balance sheet, enhance financial flexibility, and position Hallmark for long-term success. We appreciate Hildene’s support and confidence in our business and believe this transaction positions Hallmark for a stronger future. Importantly, our insurance company subsidiaries continue to perform well and are not part of this process. We remain fully committed to servicing and partnering with policyholders, agents, and vendors without interruption, and we expect normal business operations to continue.” – Chris Kenney, President and Chief Executive Officer of Hallmark.