ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. and certain of its U.S. affiliated companies (collectively, “Hardinge” or the “Company”), a global leader and provider of advanced machine tool, manufacturing, and workholding solutions, today announced that it has entered into an agreement in principle on an asset purchase agreement (the “APA”) with an affiliate of Centre Lane Partners to sell substantially all of the Company’s business lines’ operations and assets. The Company has voluntarily initiated chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware (the “Court”) to complete a value-maximizing sale process that is expected to strengthen the financial foundation of Hardinge’s business lines. Only Hardinge Inc.’s U.S. companies have filed for chapter 11 protection. The Company’s international entities are not part of the filing. Foreign and domestic operations are expected to continue as normal.
Importantly, the Company enters into this process with the strong support of its secured lender, an affiliate of Centre Lane Partners. Hardinge has secured approximately $30 million in debtor-in-possession financing from an affiliate of Centre Lane Partners that, following approval by the Court, is expected to enable operations to continue in the ordinary course during the Company’s sale process and chapter 11 cases.
“Today’s news marks an important step forward that will bolster our businesses’ financial foundation,” said Greg Knight, Chief Executive Officer of Hardinge. “Following the potential transaction, we expect our businesses to maintain their global leadership in providing the advanced solutions our customers rely on. Throughout this process, we are focused on operating in a business-as-usual manner and remain dedicated to delivering with excellence for our customers worldwide.”
The Company will be seeking approval of the proposed transaction pursuant to Section 363 of the U.S. Bankruptcy Code and is thus commencing a court-supervised sale process to “market-check” the proposal received from the APA and seek the highest or otherwise best bid for its assets to maximize value for all stakeholders. The Company will seek to complete the sale process in approximately 50 days.
“Hardinge has built a renowned reputation as a reliable provider of high-precision machine tools and accessories, and we are confident in the Company’s business prospects,” said Quinn Morgan at Centre Lane Partners. “We look forward to working with the Company to complete the sale process and put Hardinge on a firm financial footing so that it may turn its focus to serving customers with market leading products well into the future.”
Additional information is available through the Company’s claims agent, Kroll Restructuring Administration LLC, at https://cases.ra.kroll.com/Hardinge. Stakeholders with questions can email HardingeInfo@ra.kroll.com or call 833-307-3792 (U.S./Canada) or +1 646-809-1790 (International).
Advisors
Ropes & Gray LLP and Chipman Brown Cicero & Cole, LLP are serving as legal advisors, Houlihan Lokey is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Adrian Frankum of Ankura Consulting Group, LLC has been appointed Chief Restructuring Officer of the Company. Jones Day is serving as legal advisor to Centre Lane Partners.
About Hardinge, Inc.
Hardinge is a leading international provider of advanced metal-cutting solutions. The Company provides a full spectrum of highly reliable CNC turning, grinding, and honing machines as well as technologically advanced workholding accessories.
The diverse products Hardinge offers enables the Company to support a variety of market applications in industries including aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology, transportation and more.
Hardinge has developed a strong global presence with manufacturing operations in North America, Europe, and Asia. Hardinge applies its engineering and applications expertise to provide companies with the right machine tool solution and support every time.
