Home Results Case Studies ​Centrifuge Manufacturer
Manufacturing
Achieved a settlement between company and parent firm to avoid bankruptcy filing​

In 2016, 80% of a centrifuge manufacturer was acquired by a Chinese firm with a put option given to the seller for the remaining 20%. In 2018 the put option was exercised and demand was made of the Chinese parent to purchase the remaining 20%. However, the Chinese parent was unable to raise the funds and defaulted on the demand. Litigation ensued and the matter came to ahead in early 2020. As the 80% shareholder, the Chinese parent looked to put the Company into Chapter 11 to resolve the dispute. With the guidance of Harney, the parties ultimately resolved their differences and reached agreement on a restructuring and the purchase of the 20% interest. ​

The Solution
The Harney team worked with restructuring counsel to evaluate issues that might arise in a Chapter 11 filing and benefits of a Chapter 11 filing​
Assessed the business operations and identified significant operational issues with working capital investment​
Evaluated the communication of financial information between the U.S. company and the Chinese parent and identified deficiencies​
Working with counsel, Harney was integral in negotiating a solution between the 20% shareholder and the Chinese parent
The Results
Gathered information necessary to file a Chapter 11 by the parent identifying strengths and weaknesses of a filing​
Identified areas of cost savings in operations and reduction in working capital investments through better operations management​
Achieved a settlement between the parties that avoided a bankruptcy filing​
Services & Roles
Financial advisor to the Company with the potential to serve as CRO
*Some engagements may have been performed by team prior to joining Harney Partners.