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                                 Exhibit (d)(6)


                 PRESS RELEASE, DALLAS, TEXAS, OCTOBER 10, 1996

Hallwood Energy Corporation (OTC:HWEC) and The Hallwood Group Incorporated
(NYSE:HWG) announced today that they have entered into a definitive Merger
Agreement providing for the merger of Hallwood Energy Corporation ("Hallwood
Energy") into The Hallwood Group Incorporated ("Hallwood Group").  Prior to the
merger, Hallwood Group has agreed to commence a tender offer for all the
outstanding shares of common stock of Hallwood Energy at a price of $19.50 per
share, net to the seller in cash, subject to the terms and conditions of the
tender offer documents.

The Board of Directors, and Special Committee of the Board of Directors, of
Hallwood Energy have unanimously approved the tender offer and the merger and
determined the terms of the tender offer and the merger are fair to, and in the
best interest of, stockholders of Hallwood Energy.  The Board of Directors of
Hallwood Energy recommends that all stockholders of Hallwood Energy accept the
tender offer and tender their shares.  Principal Financial Securities, Inc.
acted as financial advisor to the Special Committee of the Board of Directors
of Hallwood Energy and advised the Special Committee that the consideration to
be received by the stockholders of Hallwood Energy is fair to the stockholders
(other than Hallwood Group) from a financial point of view as of the date of
the Merger Agreement.

Hallwood Group currently owns approximately 81.6% of the issued and outstanding
shares of the common stock of Hallwood Energy.  The completion of the
transaction will be conditioned upon, among other things, the valid tender of a
majority of the shares of Hallwood Energy not currently held by Hallwood Group
which, together with the shares currently held by Hallwood Group, will
constitute at least 90% of the issued and outstanding shares of the common
stock of Hallwood Energy.