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CAMBRIDGE, Ontario — Erwin Hymer Group North America may have “materially exaggerated” and “mischaracterized” the profitability of the business before going into receivership Friday — a practice that may have been ongoing for years, The Record reported.
“The profitability of certain (Erwin Hymer Group North America) entities was materially exaggerated or otherwise mischaracterized,” said Mark Gottlieb, president and senior adviser on strategy, mergers and acquisitions and corporate finance for Corner Flag, a U.S.-based company that acquired shares of the RV maker following its exclusion from the multibillion dollar takeover of its parent company earlier this year.
“Such financial irregularities were pervasive throughout (the company) and may have pre-existed Erwin Hymer Global Group’s acquisition,” he added.
He said the company continued to have a liquidity shortfall after the Thor deal, making it unable to meet payroll, pension, benefits and other financial duties. Corner Flag loaned Erwin Hymer North America more than $5 million on Feb. 14 to satisfy those immediate financial pressures, meaning employees should receive salaries and vacation pay accrued up to Friday.
The full story can be found at The Record.