Hardinge Takes Strategic Action to Facilitate Sale Process and Continue Global Industry Leadership on Reinforced Financial Foundation
29 July 2024 - 5:47AM
Business Wire
Enters into agreement in principle on asset
purchase agreement with an affiliate of Centre Lane Partners for
sale of substantially all of the Company’s assets
Files voluntary petitions for chapter 11 relief
to effectuate a value-maximizing transaction
Secures commitment for approximately $30
million in debtor-in-possession financing to continue global
manufacturing and distribution operations without disruption
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.
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