Erwin Hymer financial documents paint a bleak picture
Forms filed in the Ontario Superior Court spell financial trouble for Erwin Hymer Group’s North American operations.
The documents show that the local RV manufacturer had $300 million in liabilities, not enough money to pay the staff, and couldn’t have survived much longer at the time of bankruptcy.
Financial firm Alvarez and Marsal put the hundreds of pages on their website, which stated Erwin Hymer had an “operational, liquidity, and governance crisis.”
The company had a weekly payroll of more than one million dollars for its 850 employees and didn’t have enough money to pay them.
Employees learned last week they were terminated effective immediately.
Erwin Hymer borrowed $5 million on Valentine’s Day from American firm Corner Flag to help with its payroll commitments and the cost of selling the company.
The North American operations are now a whole-owned subsidiary of Corner Flag.
Erwin Hymer owes $95 million to European banks, 80 million euros to its parent company, and 85 million to trade creditors.
The Waterloo Region-based business Jay Fencing also has a $65,000 lien against the company’s plant located on Tyler Drive.
The documents show some employees are still at the company to help with receivership proceeds and to figure out what’s going to happen to the business and its assets.