Toronto-based forensic accounting firm is investigating the 2016 sale of local RV manufacturer Roadtrek to German-based Erwin Hymer Group as part of a multimillion dollar insurance claim that alleges Roadtrek misrepresented its operations and cash flow in the years leading up to the deal.
Accounting firm Cohen Hamilton Steger was hired to help investigate the deal that saw Erwin Hymer Group acquire Roadtrek from US-based private equity firm Industrial Opportunity Partners and rename it Erwin Hymer Group North America.
The insurance claim, known as a representations and warranties policy, alleges Roadtrek "may have breached several representations" as part of that deal, and that Roadtrek's financial statements for 2013, 2014 and the first 10 months of 2015 were not presented fairly.
Industrial Opportunity Partners had purchased the majority of the Roadtrek shares five years earlier in 2011, then sold them to Erwin Hymer Group in a share purchase agreement that closed Feb. 17, 2016. The RV company's local management team remained unchanged following the deal.
A seven-page bankruptcy report from Oct. 8 shows the former RV maker was even more heavily indebted than was initially reported. Early estimates said the company owed roughly CAN$275 million to 900 creditors, but it's actually closer to about $315 million and nearly 2,000 creditors.
https://www.therecord.com/news-stor...ing-firm-investigating-2016-erwin-hymer-sale/
Accounting firm Cohen Hamilton Steger was hired to help investigate the deal that saw Erwin Hymer Group acquire Roadtrek from US-based private equity firm Industrial Opportunity Partners and rename it Erwin Hymer Group North America.
The insurance claim, known as a representations and warranties policy, alleges Roadtrek "may have breached several representations" as part of that deal, and that Roadtrek's financial statements for 2013, 2014 and the first 10 months of 2015 were not presented fairly.
Industrial Opportunity Partners had purchased the majority of the Roadtrek shares five years earlier in 2011, then sold them to Erwin Hymer Group in a share purchase agreement that closed Feb. 17, 2016. The RV company's local management team remained unchanged following the deal.
A seven-page bankruptcy report from Oct. 8 shows the former RV maker was even more heavily indebted than was initially reported. Early estimates said the company owed roughly CAN$275 million to 900 creditors, but it's actually closer to about $315 million and nearly 2,000 creditors.
https://www.therecord.com/news-stor...ing-firm-investigating-2016-erwin-hymer-sale/
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