Hallmark Financial Services, Inc. has officially sought bankruptcy protection under a prepackaged Chapter 11 process. The Dallas, Texas-based company is known for its property and casualty-related insurance solutions.
The company has entered into a restructuring support agreement (RSA) with key stakeholders as it moves forward with a financial restructuring. Its day-to-day business activities are expected to continue as normal throughout the proceedings.
Overview of the Prepackaged Chapter 11 Filing
According to a company press release on Businesswire, Hallmark Financial Services, Inc. signed an RSA with Hildene Capital Management and certain affiliated entities.
Clients managed by Hildene hold a majority of the company’s debt and support the proposed restructuring.
To implement the restructuring agreement, the company filed its Chapter 11 petition on June 15, 2026. The Chapter 11 filing includes a prepackaged reorganization plan, although company advisors may continue evaluating alternative proposals during the proceedings.
The company has retained the following advisors for the restructuring:
- Gray Reed – Restructuring Counsel
- Olshan Frome Wolosky LLP – Corporate Counsel
- Oliver Wyman, LLC – Financial Advisor
- Raymond James – Investment Banker
- Prosek Partners – Strategic Communications Advisor
- William K. Snyder (Partner at Oliver Wyman, LLC) – Chief Restructuring Officer
The company could complete the restructuring requirements and exit the bankruptcy within 90 days after regulators approve the reorganization plan.
Impact on Insurance Operations, Employees, and Vendors
The press release states that the insurance company subsidiaries of Hallmark are set to remain separate from the proceeding. Their operations will continue without any hindrances throughout the restructuring.
Company president and CEO Chris Kenney confirmed the same and said that the entities will continue services. In addition, they will keep partnering with policyholders, agents, and vendors without disruptions.
Hallmark submitted several customary first-day motions that are expected to push the company towards maintaining business continuity. Its commitments to employees, agents, policyholders, and vendors will remain as usual. This would include payment of employee wages and benefits.
The company also seeks to make full payments to vendors under normal terms. This decision is meant for goods and services offered on or after the filing date.
The press release clarified that the company has adequate cash on hand and does not face the need to secure debtor-in-possession financing.
What Led to the Filing
Sharing the reasons for the filing, Kenney reflected on the actions Hallmark initiated for the last two years related to underperforming businesses and liquidity. After these efforts, the company has now attempted the restructuring to strengthen its balance sheet. The company also hopes to enhance its financial flexibility and experience long-term success.
The company said the restructuring is also designed to provide greater stability for policyholders, agents, business partners, and other stakeholders.
Highlights from the Petition
Case filings on PACER show that Hallmark Financial Services, Inc. submitted a list of creditors with the largest unsecured claims and who are not insiders. Some of these are Alesco Preferred Funding X, Ltd., Raymond James & Associates, Inc., Pershing LLC, LPL Financial Corporation, and others.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
The corporate ownership statement listed in the petition shows that Charles Schwab & Co. Inc. holds 13.6% of the company’s shares. Raymond James & Associates, Inc. has 36.29%, and NFS LLC has 11.5% of the shares.
A summary of the other details from Chapter 11 petition is given here:
- Filing Date: June 15, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of Texas
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-80007
- Estimated Assets: Between $10,000,001 and $50 million
- Estimated Liabilities: Between $100,000,001 and $500 million
- Estimated Creditors: Between 200 and 999
- Reason for Filing: Restructure business under court supervision
About the Company
Based in Dallas, Hallmark Financial Services, Inc. operates as a property and casualty insurance provider serving both businesses and individuals. Since its inception in 1987, the company has been offering a wide range of personal and commercial insurance products.
It also maintains licensing to operate across most states in the country through its insurance subsidiaries and managing general agency networks.
With creditor backing already in place, the latest filing reflects the next step in its efforts to handle persistent financial challenges and strengthen its capital structure.
