Hardinge: Failed China Deal Triggers 51-Day Chapter 11

Hardinge Inc., a precision machine tool manufacturer with roots dating to 1890, filed for chapter 11 bankruptcy protection on July 29, 2024, in the United States Bankruptcy Court for the District of Delaware. The filing came after more than a century of operations serving aerospace, automotive, medical device, and general manufacturing customers worldwide. With approximately $330 million in annual revenue, 1,700 employees worldwide, and an order backlog exceeding $220 million, Hardinge entered bankruptcy as a going concern facing a liquidity crisis.

The primary catalyst was a failed attempt to sell Hardinge China, which became mired in prolonged regulatory reviews by the Shenzhen Stock Exchange and the Chinese Securities Regulatory Commission. The transaction, expected to provide capital for working capital needs and debt service, was abandoned in May 2024 after months of uncertainty. Hardinge's 2021 acquisition of German tool manufacturer J.G. Weisser Söhne GmbH & Co. KG required intercompany loans exceeding $70 million and comfort letters of €13 million to sustain the subsidiary.

Facing accelerated debt maturities and no viable refinancing options, Hardinge engaged Houlihan Lokey to market its assets, contacted 81 potential buyers, and ultimately secured a stalking horse bid from affiliates of Centre Lane Partners. The private equity firm acquired Hardinge's prepetition secured debt just days before the filing, positioning itself to credit bid approximately $100 million at the 363 sale. A 363 sale closed 51 days after filing, and the Debtors' Plan of Liquidation was confirmed on December 20, 2024, with an effective date of December 31, 2024. Through the sale, Hardinge's core machine tool and workholding businesses were restructured as two separate operating entities—Kellenberger and Forkardt Hardinge—while the remaining estate transitioned to a General Unsecured Claims Trust for wind-down administration.

Debtor(s)	Hardinge Inc. (8 affiliated entities)
Case Number	24-11605
Court	U.S. Bankruptcy Court, District of Delaware
Judge	Hon. J. Kate Stickles
Petition Date	July 29, 2024
Plan Type	Chapter 11 Plan of Liquidation
Confirmation Date	December 20, 2024
Effective Date	December 31, 2024
Annual Revenue	~$330 million
Employees	~1,700 worldwide
Prepetition Funded Debt	$106.66 million
DIP Facility	$27.35 million (lender: Centre Lane Partners affiliates)
Stalking Horse Bidder	Honing US Holdings, LLC (Centre Lane affiliate)
Credit Bid Amount	~$100 million
Sale Closing	September 18, 2024
Filing-to-Sale Timeline	51 days
GUC Projected Recovery	3.6%–6.2%
PBGC Underfunding	$25.5–$35.0 million
Privet Settlement	$3.25 million

Corporate History and Legacy

The history of Hardinge begins in 1890, when brothers Henry and Franklin Hardinge started producing watchmakers' lathes and precision tools in Chicago. The company designed lathes for high-tolerance watchmaking and precision machining. By the 1920s, the company had relocated its primary operations to Elmira, New York, establishing the manufacturing hub that would define its operations for decades. The Elmira facility expanded to include both production and engineering operations.

Over subsequent decades, Hardinge evolved from a niche lathe supplier into a machine tool solutions provider. The company developed Super-Precision turning technology, including collet chucks and tooling systems. Acquisitions expanded the product portfolio to include milling, grinding, and workholding technologies. The acquisition of Swiss-based Kellenberger added grinding capabilities, while the Bridgeport purchase added milling machines. Other additions included Forkardt and Buck Chuck workholding systems. By the early 2000s, Hardinge had expanded into multiple product lines serving customers across aerospace, automotive, medical device, energy, and general manufacturing sectors.

In May 1993, Hardinge completed an initial public offering, raising capital for expansion and modernization efforts. The company pursued acquisitions throughout the 2000s and 2010s, building a global distribution and service network. In 2002-2003, Hardinge acquired and revived the Bridgeport brand, resuming production of the Series I milling machine at its Elmira facility. Over 370,000 Bridgeport machines had been manufactured since the brand's inception. In 2018, Privet Fund Management completed a take-private transaction valued at approximately $245 million, paying $18.50 per share in cash. Following the privatization, headquarters relocated from Elmira to Berwyn, Pennsylvania, though manufacturing operations remained in Elmira and other global facilities. In 2021, Hardinge began reshoring manufacturing from its Taiwan plant to the Elmira facility. Executives cited the desire to control production quality and reduce lead times as primary motivations. Ahead of IMTS 2022, Hardinge mounted its largest booth display in over four decades—showcasing 21 machines and launching the U.S.-produced Bridgeport XR1000 vertical milling center.

Prepetition Financial Structure

On September 27, 2022, Hardinge entered into a Prepetition Credit Agreement with BMO Harris Bank N.A. as administrative agent and lender. The facilities included a $75 million term loan and a $35 million revolving credit facility, with substantially all assets of the U.S. Debtor entities pledged as collateral. The original maturity date extended to September 27, 2027.

The 2021 acquisition of J.G. Weisser Söhne GmbH & Co. KG, a German manufacturer of turning and grinding machines, required financial support. Court filings state that Hardinge provided intercompany loans exceeding $70 million to support Weisser operations, along with €13 million in comfort letters guaranteeing subsidiary obligations. Concurrent efforts to consolidate Kellenberger manufacturing sites in Switzerland resulted in high inventories of unsold finished goods and disrupted production schedules.

Events Leading to Chapter 11

The proximate cause of Hardinge's bankruptcy filing was the collapse of a planned sale of Hardinge China to a publicly traded Chinese company. The transaction was expected to provide proceeds for working capital needs and debt repayment. The deal became mired in regulatory reviews by the Shenzhen Stock Exchange and the Chinese Securities Regulatory Commission (CSRC). By May 2024, after months of uncertainty, Hardinge abandoned the transaction. Without the expected proceeds, Hardinge's liquidity position deteriorated.

The Weisser integration problems extended beyond financial support. Efforts to consolidate manufacturing operations across Switzerland, Germany, and the United States resulted in supply chain friction and elevated inventory levels. Vendors grew concerned about Hardinge's financial position, leading some to tighten payment terms or reduce shipments. The resulting operational disruptions compounded the company's difficulties.

In May 2024, Hardinge appointed Adrian Frankum as Chief Restructuring Officer and engaged Houlihan Lokey Capital, Inc. as investment banker to conduct a marketing process. Beginning June 4, 2024, Houlihan Lokey contacted 81 potential buyers for the company's assets, exploring both going-concern sales and refinancing alternatives. When existing lenders declined to provide incremental liquidity, Hardinge negotiated the sale of its secured credit facilities to Centre Lane Partners V, L.P., which closed on July 22, 2024. Centre Lane also extended a $2.9 million bridge loan on July 23, 2024, providing short-term liquidity to support operations through a chapter 11 filing. An amendment accelerated the credit facility maturity to July 31, 2024, effectively requiring Hardinge to file bankruptcy before the debt came due.

363 Sale Process and DIP Financing

Upon filing, Hardinge obtained debtor-in-possession financing from affiliates of Centre Lane Partners, which had acquired the prepetition secured debt just days before. The Court approved an Interim DIP Order on July 31, 2024, authorizing access to $24.2 million immediately, with the full $27.35 million facility available upon entry of the Final DIP Order on September 17, 2024.

The DIP financing provided liquidity to maintain operations, pay employees and critical vendors, and fund the sale process. Centre Lane's dual role as prepetition secured lender and DIP lender positioned it as the stalking horse bidder. Hardinge filed its 363 Sale Motion on the first day, requesting expedited bidding procedures to maximize value while the business remained operational. The Court approved bidding procedures on August 21, 2024, establishing Honing US Holdings, LLC (a Centre Lane affiliate) as the stalking horse bidder with a credit bid component of approximately $100 million. Despite marketing efforts reaching 81 potential buyers, no competing bids emerged at or above the stalking horse level. The Court approved the sale on September 17, 2024, and the transaction closed the following day—51 days after filing.

Ohio Tool Works, LLC, one of the Debtor affiliates, was sold separately to a third-party purchaser for $2.8 million in cash. The sale order was approved simultaneously with the main asset sale on September 17, 2024. The sale to Centre Lane Partners affiliates encompassed substantially all of Hardinge's global machine tool and workholding businesses. The acquired assets included the Kellenberger grinding technology platform, USACH grinding systems, Forkardt workholding products, and the core Hardinge product lines. Jones Day represented Centre Lane in the transaction. The acquisition was structured to preserve operational continuity. Former Hardinge CEO Greg Knight was retained to lead the Kellenberger global machine business, while Ryan Ervin, former President of Forkardt Hardinge, continued leading the workholding business.

Plan of Liquidation and Claims Treatment

Following the asset sale, the Debtors shifted to winding down the remaining estate. On October 9, 2024, Hardinge filed a Combined Disclosure Statement and Plan of Liquidation. The plan went through multiple amendments as the Debtors negotiated settlements with creditors and other stakeholders.

The entire process from filing to emergence spanned approximately five months. The Plan of Liquidation established a General Unsecured Claims Trust to administer remaining assets, pursue estate causes of action, reconcile claims, and make distributions. Estimated claims and projected recoveries reflected the gap between available assets and creditor obligations.

A key feature of the confirmed plan was a settlement with Privet Fund Management, the 2018 take-private sponsor. Under the settlement, Privet contributed $3.25 million to the estate in exchange for releases of potential claims.

Winston & Strawn LLP represented Privet in the settlement negotiations. Province, LLC was appointed as GUC Trustee to administer the post-confirmation wind-down. The Trust's responsibilities include liquidating remaining assets, pursuing estate causes of action, reconciling disputed claims, and administering distributions to allowed claims.

Pension and PBGC Issues

Hardinge maintained a defined benefit pension plan covering eligible employees. At the time of filing, the plan was estimated to be underfunded by $25.5 million to $35.0 million.

The Pension Benefit Guaranty Corporation filed claims by the November 2024 bar date and negotiated a trusteeship agreement with the Debtors. Under the agreement, approved December 13, 2024, the PBGC assumed administration of the pension plan, providing benefits within statutory limits. PBGC claims share pro rata with general unsecured creditors in the distribution waterfall, reducing the recovery pool available to trade and other unsecured claimants.

Key Professionals and Advisors

The Court entered an Omnibus Order Granting Final Fee Applications on April 28, 2025, approving compensation for debtors' professionals and committee counsel.

Post-Confirmation Status and Case Wind-Down

As of December 2025, the lead debtor case (Hardinge Inc., Case No. 24-11605) remains open for GUC Trust administration. Six affiliate debtor cases—Hardinge Ventures LLC, Ohio Tool Works LLC, Kellenberger Swiss Grinding Machines LLC, Hardinge Technology Systems Inc., Forkardt Inc., and Hardinge Grinding Group Inc.—were closed via Final Decree entered June 18, 2025. The GUC Trust continues reconciling filed claims, with the claims objection deadline extended to March 26, 2026. Province, LLC, as GUC Trustee, filed its First Omnibus Objection to Claims in May 2025, which was sustained by Court order in June 2025.

Most distributions remain pending completion of claims reconciliation.

Industry Context

Industry professionals on Practical Machinist and other forums expressed mixed reactions to the bankruptcy, with concerns centered on parts and service availability for existing Hardinge equipment, particularly for legacy product lines. Industry coverage emphasized that operational continuity was maintained throughout the restructuring.

The post-sale structure retained Greg Knight as leader of Kellenberger and Ryan Ervin as leader of Forkardt Hardinge.

Frequently Asked Questions

What caused Hardinge Inc. to file for chapter 11 bankruptcy?

The primary catalyst was the failed sale of Hardinge China, which became mired in regulatory reviews by the Shenzhen Stock Exchange and Chinese Securities Regulatory Commission. The prolonged uncertainty blocked expected proceeds for working capital and debt repayment, forcing Hardinge to abandon the transaction in May 2024. Additionally, the 2021 Weisser acquisition strained capital resources, requiring intercompany loans exceeding $70 million and €13 million in comfort letters.

Who acquired Hardinge's assets, and what entities emerged from the sale?

Affiliates of Centre Lane Partners acquired substantially all of Hardinge's global machine and workholding businesses through a 363 sale that closed on September 18, 2024. The assets were restructured into two separate entities: Kellenberger (global machine business) and Forkardt Hardinge (workholding business), led by former Hardinge executives Greg Knight and Ryan Ervin respectively.

What is the projected recovery for general unsecured creditors?

General unsecured creditors are projected to receive between 3.6% and 6.2% recovery on their claims. As of Q3 2025, no distributions had been made to general unsecured creditors, with most distributions pending claims reconciliation through the GUC Trust.

What happened to Hardinge's pension obligations?

The company's defined benefit pension plan was estimated to be underfunded by $25.5 to $35 million. The PBGC filed claims by the November 2024 bar date and assumed trusteeship of the plan pursuant to an agreement approved in December 2024. PBGC claims share pro rata with general unsecured creditors in the limited recovery pool, with Privet contributing $250,000 specifically allocated to PBGC.

How long did the Hardinge chapter 11 case take from filing to emergence?

The timeline was: the company filed on July 29, 2024, completed the sale to Centre Lane Partners on September 18, 2024 (51 days), had its Plan of Liquidation confirmed on December 20, 2024, and reached the effective date on December 31, 2024—approximately five months from filing to emergence.

What is the current status of the Hardinge bankruptcy case?

As of December 2025, the lead debtor case (Hardinge Inc., 24-11605) remains open for GUC Trust administration. Six affiliate cases were closed via Final Decree in June 2025. The GUC Trust is actively reconciling claims, with the objection deadline extended to March 26, 2026. Final distributions to allowed unsecured claims are pending completion of the reconciliation process.

Who were the key professional advisors in the case?

Ropes & Gray LLP served as lead counsel for the Debtors, with Houlihan Lokey as financial advisor and investment banker. Kroll Restructuring Administration LLC served as claims and noticing agent. The Official Committee of Unsecured Creditors was represented by McDermott Will & Emery LLP. Jones Day represented both the DIP lenders and the buyer (Centre Lane Partners). Province, LLC serves as GUC Trustee for the post-confirmation wind-down.

How did Centre Lane Partners position itself to acquire Hardinge?

Centre Lane acquired Hardinge's prepetition secured debt from BMO Harris Bank on July 22, 2024, just days before the bankruptcy filing. Centre Lane also provided a $2.9 million bridge loan and DIP financing, positioning itself as the stalking horse bidder with a credit bid of approximately $100 million. No competing bids emerged, and the sale closed 51 days after filing.

What brands and product lines were included in the sale?

The sale included the Kellenberger grinding technology platform, USACH grinding systems, Forkardt workholding products, Buck Chuck workholding systems, Bridgeport milling machines, and the core Hardinge super-precision turning product lines. The acquired assets represent the company's full portfolio of machine tool and workholding technologies.

What was the Privet Fund Management settlement?

Privet, the 2018 take-private sponsor, contributed $3.25 million to the estate in exchange for releases of potential claims. Of this amount, $3 million was allocated to unsecured creditors, $250,000 to PBGC, and $500,000 provided initial funding for the GUC Trust. Winston & Strawn LLP represented Privet in the settlement negotiations.

Who is the claims agent for Hardinge Inc.?

Kroll Restructuring Administration LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

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