(Bloomberg) -- Hardinge Inc., which makes metal-working machines for the automotive and aerospace industries, filed bankruptcy, blaming Chinese regulators who stalled the company’s plans to sell its operations in the country.
The company will try to sell itself in bankruptcy to affiliates of Centre Lane Partners, a private equity firm that took over as Hardinge’s senior lender last week. Under a proposal still being negotiated, Centre Lane would act as the lead bidder in a court-supervised auction, documents show.
Hardinge owes about $107 million under a credit agreement held by Centre Lane, the company said in its Chapter 11 filing. Chapter 11 is the part of the US bankruptcy code that companies use to cut debt and revive themselves while under court protection.
In 2020, the company announced plans to bring jobs back to the US by moving its machine center from Taiwan to a plant in New York. Three years later, as Hardinge faced increasing financial pressure, the company tried to sell its China and Taiwan businesses. The Taiwan sale closed in November. But China’s stock regulators intervened in the sale of the business in the country, demanding more information about the deal, Adrian Frankum, the company’s chief restructuring officer, said in a court filing.
As part of its bankruptcy case, Hardinge will borrow about $30 million from Centre Lane, according to a company statement.
Hardinge was founded in 1890 by two brothers in Chicago who made tools for watchmakers. It moved to its current headquarters in Elmira, New York, where it eventually expanded into a maker of machines that grind, mill and turn metal.
The case is Hardinge Inc. 24-11605, US Bankruptcy Court, District of Delaware (Wilmington)
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