Hardinge Inc.: Precision Machine Tool Maker's $100M Credit Bid Sale and Liquidation

Hardinge Inc., a precision machine tool manufacturer with roots dating to the 1890s, filed chapter 11 petitions on July 29, 2024, in the U.S. Bankruptcy Court for the District of Delaware. The filing covered seven jointly administered debtor entities and followed a liquidity crisis triggered by a failed attempt to sell the company's Chinese operations after Chinese securities regulators intervened. Centre Lane Partners, a middle-market private investment firm, had purchased Hardinge's secured debt one week before the petition date and entered the case as DIP lender and stalking horse bidder with a $100 million credit bid for substantially all assets.

Bidding procedures were approved within 23 days. The asset sale closed on September 19, 2024, with the former Hardinge businesses now operating as Kellenberger and Forkardt Hardinge under Centre Lane ownership. A Fourth Amended Combined Disclosure Statement and Chapter 11 Plan of Liquidation was confirmed on December 20, 2024, establishing a General Unsecured Claims Trust to distribute remaining value to impaired creditors.

Debtor(s)	Hardinge Inc.
Court	Delaware
Case Number	24-11605
Petition Date	July 29, 2024
Judge	J. Kate Stickles
Confirmation Date	December 20, 2024
DIP Facility	Up to $27.35M from Centre Lane Solutions Partners, LP
Claims Agent	Kroll Restructuring Administration LLC

Company Background and Pre-Filing Distress

Hardinge Brothers was founded in the 1890s by Henry and Franklin Hardinge, who began making watchmakers' tools in the back of a Chicago boarding house. The company relocated to Elmira, New York, in the 1920s and grew into an international manufacturer of computer-controlled metalcutting machines, grinding machines, machining centers, collets, chucks, and related industrial products. By the petition date, Hardinge employed approximately 1,700 workers globally and generated approximately $330 million in annual revenue.

The company operated across three product segments — grinding, turning and milling, and workholding — through seven business lines and twelve brands, including Kellenberger, Hardinge, Buck Chuck, Forkardt, and Ohio Tool Works. It maintained ten manufacturing sites in the United States (New York, Illinois, Michigan, Ohio), Germany, China, Switzerland, and India.

Private equity ownership. In May 2018, Privet Fund Management completed the acquisition of all remaining Hardinge shares at $18.50 per share, taking the company private in a transaction valued at approximately $245 million. Privet subsequently relocated the company's headquarters from Elmira to Berwyn, Pennsylvania.

Reshoring initiative. In December 2020, Hardinge announced plans to bring manufacturing capacity back to the United States, relocating core turning and milling production from Taiwan to Elmira. The company received the 2022 National Metalworking Reshoring Award from the Association for Manufacturing Technology for these efforts.

Weisser acquisition. In October 2021, Hardinge acquired J.G. Weisser Söhne GmbH & Co. KG, a German turning and milling manufacturer, financing the acquisition with credit facility proceeds and a $15 million equity investment from Privet. The capital requirements for the Weisser turnaround far exceeded expectations. By the second half of 2023, cash provided to Weisser — approximately $70 million in intercompany receivables — created working capital constraints across the consolidated enterprise. As of the petition date, Hardinge maintained a comfort letter commitment to Weisser of €13 million.

Failed Hardinge China sale. In early 2023, Hardinge began a process to sell its Chinese operations to streamline the business. Houlihan Lokey marketed the business throughout 2023, and in January 2024, a definitive agreement was signed with closing expected in the first half of 2024. However, the Shenzhen Stock Exchange and the China Securities Regulatory Commission (CSRC) intervened, requiring a Material Asset Restructuring review. The buyer expressed substantial uncertainty about regulatory approval. In early May 2024, the parties terminated the purchase agreement, eliminating an expected source of liquidity.

Liquidity crisis. By May 2024, Hardinge faced declining cash flows, an inability to access incremental liquidity under its prepetition credit agreement, and pressure from vendors who refused to deliver products without payment assurances. The combination of the failed China sale, the Weisser drain, a buildup of unsold finished goods inventory ahead of facility consolidation, and macroeconomic pressures — particularly in Chinese markets — left the company unable to continue outside of a restructuring proceeding.

Prepetition Marketing and Centre Lane Transaction

Hardinge's prepetition capital structure consisted of a credit agreement entered into on September 27, 2022, with BMO Harris Bank N.A. as administrative agent. The facility provided a $75 million term loan and a $35 million revolving credit facility, initially maturing in September 2027 and secured by substantially all of the U.S. debtor loan parties' assets. As of the petition date, approximately $106.7 million in aggregate principal remained outstanding.

In late May 2024, the debtors engaged Houlihan Lokey to explore strategic alternatives. On June 4, 2024, Houlihan began contacting potential bidders, distributing a teaser to 81 potential strategic and financial sponsor parties. Seventy parties participated in introductory calls and 47 executed nondisclosure agreements. Initial bids were due June 19, when five proposals were received — none acceptable to the prepetition financial institution lenders. The process was extended to July 12, when eight proposals were received, including one from Centre Lane that involved purchasing the secured debt, providing incremental funding, offering DIP financing, and serving as the stalking horse purchaser.

On July 22, 2024, Centre Lane closed the purchase of the prepetition lenders' secured debt. The borrower entered into a second amendment that provided for a new $2.9 million term loan and accelerated the maturity date for all borrowings to July 31, 2024. One week later, Hardinge and its six affiliated debtors filed for chapter 11 protection.

DIP Financing and First-Day Relief

Centre Lane Solutions Partners, LP, provided the DIP financing facility as administrative agent and lender. The facility carried a maximum commitment of $27.35 million (increasing to approximately $29.5 million with fees), with an initial term loan commitment of $14 million expandable to $24.2 million upon agreement on a modified budget that included the USACH/Kellenberger term loan commitment.

Interest Rate	SOFR + 5.50% (Base Rate + 5.50%)
Default Rate	+2.00% over applicable rate
DIP Origination	3.00% of aggregate commitments (paid in kind)
Transaction Premium	3.00% of aggregate commitments (paid in kind)
Security	First-priority liens on substantially all debtor assets
Interim Order	July 31, 2024
Final Order	September 17, 2024

The DIP facility was secured by first-priority liens on substantially all debtor assets, with the DIP secured parties receiving superpriority administrative expense claims subject to a carve-out for professional fees. The facility contained milestones, the failure of which would constitute termination events. The court entered an interim DIP order on July 31, 2024, and a final DIP order on September 17, 2024.

First-day relief. The court granted standard first-day relief authorizing the debtors to continue operations during the sale process, including orders related to cash management systems, employee wages and benefits, critical vendor payments, utility service continuation, tax payments, insurance policies, and customer program obligations.

363 Sale Process

The debtors filed a sale motion on the petition date seeking approval of bidding procedures, a stalking horse asset purchase agreement with Centre Lane Partners LLC (or affiliates), and the sale of substantially all assets free and clear of liens. The sale excluded the Weisser entities.

Stalking horse terms. Centre Lane's bid consisted of a $100 million credit bid — combining the prepetition credit bid amount with the full DIP obligations as of the closing date — plus cash equal to the cash shortfall, wind-down funds, excluded cash, and assumption of certain liabilities including cure costs. Jones Day represented Centre Lane in the transaction.

Bidding procedures and timeline. Judge Stickles approved the bidding procedures on August 21, 2024 — 23 days after the petition date. The approved timeline set a bid deadline of September 9, with an auction on September 10 if necessary, and a sale hearing on September 12–13. The U.S. Trustee filed an objection to certain aspects of the sale motion, as did One Hardinge Drive LLC regarding the debtors' property interests at the Elmira headquarters.

Ohio Tool Works sale. Debtor Ohio Tool Works LLC's assets were sold separately for $2.8 million in cash to a third-party buyer. The court approved the sale on September 17, 2024.

Weisser settlement. On August 9, 2024, the debtors filed a motion to facilitate the sale and settlement of the Weisser entities. The proposed transaction involved selling Weisser equity for €1.00, with the debtors waiving approximately €71.2 million in intercompany receivables in exchange for Weisser's waiver of claims arising under the credit support obligation, comfort letters, and approximately €867,000 in intercompany payables. The official committee of unsecured creditors initially objected to the expedited timeline, arguing it needed adequate time to analyze the intercompany settlement.

Sale closing. On September 19, 2024, Hardinge announced the completion of the asset sale transactions. The former Hardinge machine businesses now operate under the Kellenberger brand, and the workholding businesses continue as Forkardt Hardinge. Both entities are led by Greg Knight, former CEO of Hardinge, and Ryan Ervin, former president of Forkardt Hardinge, under Centre Lane ownership.

Plan of Liquidation and Creditor Treatment

Following the asset sale closing, the debtors filed a Combined Disclosure Statement and Chapter 11 Plan of Liquidation on October 9, 2024. The plan underwent four amendments through confirmation, with the final version — the Fourth Amended Combined Disclosure Statement and Chapter 11 Plan of Liquidation — confirmed by Judge Stickles on December 20, 2024.

The plan established eight classes of claims and interests, with administrative expense claims, DIP facility claims, professional fee claims, and priority tax claims paid in full in cash on or before the effective date.

Class	Description	Impaired	Estimated Claims	Recovery
1	First Lien Claims	Yes	—	Pro rata from collateral proceeds
2	Miscellaneous Secured Claims	No	—	Paid in full or by agreement
3	Priority Claims	No	—	100%
4	Deficiency Claims	Yes	$30–35 million	0%
5	PBGC Claims	Yes	$22–25 million	0–10%
6	General Unsecured Claims	Yes	$7–10 million	0–10%
7	Subordinated Claims	Yes	Unknown	0%
8	Equity Interests	Yes	N/A	0%

GUC Trust. The plan established a General Unsecured Claims Trust to hold remaining assets, monetize them, and distribute proceeds pro rata to holders of allowed Class 4 (Deficiency), Class 5 (PBGC), and Class 6 (General Unsecured) claims. GUC Estate Causes of Action — including potential claims against Privet Fund Management and the debtors' officers and directors — were transferred to the trust for investigation and prosecution at the trustee's discretion. The committee selected the GUC Trustee in consultation with the debtors and Centre Lane.

Pension plan termination. The Hardinge Inc. Pension Plan, a single-employer defined benefit plan frozen since 2009 and covered by Title IV of ERISA, carried an estimated underfunding of approximately $22 million. The Pension Benefit Guaranty Corporation filed Proof of Claim No. 315 asserting an underfunding liability of $21,747,481. The pension was terminated as of September 17, 2024, with the PBGC appointed as trustee. The court authorized the trusteeship agreement on December 13, 2024, limiting the debtors' obligations to turning over plan assets and records.

Voting and cramdown. The solicitation declaration from Kroll Restructuring Administration revealed a divided vote in Class 6. General unsecured creditors accepted the plan by number of claims — 58 accepting versus 15 rejecting, or 79.45% — but rejected by dollar amount, with only $1.25 million in accepting claims against $2.25 million in rejecting claims (35.69% acceptance by amount). Classes 1 and 5 voted unanimously to accept. No valid ballot was received for Class 4 (Deficiency Claims). The plan was confirmed over Class 6's rejection by amount.

Plan settlements. All objections to the plan, including those filed at Docket 573 and 574, were resolved, overruled, or withdrawn prior to or during the December 18 confirmation hearing. The court found the plan settlements to be fair, equitable, and supported by meaningful consideration.

Key Professionals and Case Administration

Key professionals. The debtors retained Ropes & Gray LLP as restructuring counsel, with Chipman Brown Cicero & Cole, LLP serving as Delaware co-counsel. Houlihan Lokey Capital, Inc. served as financial advisor and investment banker. Ankura Consulting Group, LLC provided restructuring advisory services, with Adrian Frankum designated as Chief Restructuring Officer. Kroll Restructuring Administration LLC served as claims and noticing agent.

The official committee of unsecured creditors, appointed August 8, 2024, retained McDermott Will & Emery LLP as counsel and Province, LLC as financial advisor. The committee's five members included representatives of the Pension Benefit Guaranty Corporation, Forefront Machining Technologies, Lincoln Park Boring Co., NexGen Data Solutions, and Main Street Apps.

Centre Lane was represented by Jones Day, with Chapman & Cutler LLP serving as additional counsel.

Professional fees. Total allowed professional fees reached approximately $11.4 million, distributed as follows: Houlihan Lokey ($3.65 million), Ropes & Gray ($2.56 million), Ankura ($2.54 million), McDermott Will & Emery ($1.46 million), Chipman Brown ($662,000), Province ($462,000), and Kroll ($58,000).

Restructuring Committee. In June 2024 — prior to the bankruptcy filing — Timothy Pohl was appointed to the Hardinge board and simultaneously named chairman of a newly formed Restructuring Committee with full delegation of authority over the company's restructuring efforts. Other board members initially served on the committee but subsequently resigned; as of July 27, 2024, Mr. Pohl was the sole member.

Post-confirmation status. The plan became effective in late December 2025. As of that date, approximately 390 claims totaling over $48 million had been filed. The GUC Trust obtained an extension of the claims objection deadline to March 26, 2026. A motion for final decree closing the affiliate chapter 11 cases was filed on June 3, 2025.

Frequently Asked Questions

What caused Hardinge Inc.'s bankruptcy filing?

The most immediate trigger was the failure of a planned sale of Hardinge China after the China Securities Regulatory Commission required additional review, eliminating an expected liquidity source. The 2021 Weisser acquisition drained approximately $70 million in intercompany cash. A buildup of unsold finished goods inventory, macroeconomic pressures in Chinese markets, and the inability to access incremental credit facility draws further reduced available cash. By May 2024, vendors were refusing to deliver products without payment assurances.

Who acquired Hardinge's assets?

Affiliates of Centre Lane Partners, a private investment firm founded in 2007, acquired substantially all of Hardinge's assets through a $100 million credit bid. Centre Lane had purchased the prepetition secured debt on July 22, 2024, and provided $27.35 million in DIP financing during the case. The sale closed on September 19, 2024. The machine businesses now operate under the Kellenberger brand and the workholding businesses as Forkardt Hardinge.

What happened to Hardinge's employees?

Hardinge employed approximately 1,700 workers globally at the time of filing. The court authorized interim and final orders permitting the debtors to pay prepetition wages, employee benefits, and related obligations. Following the asset sale, the successor entities Kellenberger and Forkardt Hardinge continued operations under new ownership, retaining the workforce to support ongoing business activities.

What is the GUC Trust?

The plan established a General Unsecured Claims Trust to hold remaining debtor assets after the asset sale, monetize them, and distribute proceeds to holders of allowed Deficiency Claims, PBGC Claims, and General Unsecured Claims. The GUC Trustee was selected by the official committee of unsecured creditors and has the authority to investigate and prosecute GUC Estate Causes of Action, including potential claims against the equity sponsor Privet Fund Management.

What recovery will unsecured creditors receive?

The plan estimated that holders of Class 6 General Unsecured Claims (~$7–10 million in estimated claims) would recover between 0% and 10% through GUC Trust distributions. Class 5 PBGC Claims (~$22–25 million) carry the same estimated recovery range. Class 4 Deficiency Claims (~$30–35 million) were estimated at 0% recovery. Final distributions depend on the GUC Trust's success in monetizing remaining assets and resolving approximately 390 claims filed as of late 2025.

What happened to the Weisser business?

Hardinge acquired Weisser, a German turning and milling manufacturer, in October 2021. The acquisition proved significantly more capital-intensive than anticipated, with approximately €71 million in intercompany receivables flowing from the debtors to Weisser. During the chapter 11 case, the debtors settled the Weisser intercompany claims by selling the Weisser equity for €1.00, with mutual waivers of the intercompany receivables and payables.

What happened to the pension plan?

The Hardinge Inc. Pension Plan, a defined benefit plan frozen since 2009, was underfunded by approximately $21.7 million. The plan was terminated as of September 17, 2024, and the PBGC was appointed as trustee. Under the trusteeship, the PBGC guarantees certain unfunded benefits subject to statutory limitations.

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.

For more coverage of chapter 11 cases and restructuring developments, visit the ElevenFlo blog.