Hardinge Inc., a manufacturer of metal-working machines for the automotive and aerospace sectors, has filed for bankruptcy, attributing its financial troubles to delays caused by Chinese regulators. The company’s bankruptcy filing underscores its struggle to complete a sale of its operations in China, which has been hampered by regulatory interventions.
The company has initiated a Chapter 11 bankruptcy process, which allows businesses to reorganize and reduce debt while under court protection. Hardinge plans to sell itself in bankruptcy through a court-supervised auction, with Centre Lane Partners, a private equity firm, set to act as the lead bidder. Centre Lane Partners recently took over as Hardinge’s senior lender.
According to the bankruptcy filing, Hardinge owes approximately $107 million under a credit agreement with Centre Lane. As part of its restructuring plan, Hardinge will borrow around $30 million from Centre Lane to support its operations during the bankruptcy process.
In 2020, Hardinge announced plans to relocate its machine center from Taiwan to a new facility in New York, aiming to bring jobs back to the U.S. However, as the company faced mounting financial difficulties, it sought to divest its operations in China and Taiwan. While the sale of its Taiwan business concluded in November, regulatory hurdles in China stalled the sale of the company’s Chinese operations. Adrian Frankum, Hardinge’s chief restructuring officer, revealed in a court filing that Chinese stock regulators demanded additional information about the deal, which further complicated the transaction.
Founded in 1890 by two brothers in Chicago, Hardinge began as a toolmaker for watchmakers. The company later moved to Elmira, New York, and evolved into a prominent manufacturer of machines used for grinding, milling, and turning metal.
The bankruptcy case is being heard in the U.S. Bankruptcy Court for the District of Delaware (Wilmington) under case number 24-11605.
