Hildene takes majority ownership of Hallmark Financial in Chapter 11 restructuring

Hallmark Financial Services completed its prearranged financial restructuring and emerged from Chapter 11 on November 5, 2026. Accounts managed by Hildene Capital Management, whose clients held a majority of Hallmark's debt before the transaction, are now the majority owners of the company. The restructuring significantly reduced debt at the holding company level.

CEO Chris Kenney said the company's focus has remained on supporting those subsidiaries and their agents, policyholders and business partners. Hildene is an alternative asset manager with more than $18 billion in assets under management. Hildene's Brett Jefferson said the restructuring gives Hallmark a more sustainable capital structure.

Hallmark was advised by Gray Reed as restructuring counsel, Olshan Frome Wolosky LLP as corporate counsel, Oliver Wyman as financial adviser, with William K. Snyder of Oliver Wyman serving as Chief Restructuring Officer, Raymond James as investment banker, and Prosek Partners as strategic communications adviser.