An Ontario, Canada, judge has declined an unsecured creditor’s request to extend or delay the sale of bankrupt RV manufacturer Erwin Hymer Group North America, saying it’s in the RV company’s best interest to be sold as quickly as possible.
This story by James Jackson originally appeared in the Waterloo Region Record.
Montreal-based electronics engineering and manufacturing firm KS2 Corp. – which was owed more than $7 million by the recreational vehicle maker – filed a motion in court last week asking the judge to extend the possible sale of the company beyond the April 8 deadline requested by the receiver.
KS2 expressed “a number of concerns” with the sale, including the “short time frame” for the expedited process, which could wrap up less than two months after Erwin Hymer Group North America closed its doors and terminated all 850 employees in Cambridge and Kitchener.
The company also wanted to set up a “creditor committee” to help review possible bids for the Cambridge-based RV company, which went into receivership Feb. 15.
But Judge Michael Penny denied those requests, citing the time pressure involved in selling the company in time for the upcoming RV sale season, and the high interest that already has been expressed to receiver Alvarez and Marsal.
“The period, while expedited, is sufficient to allow interested parties to perform due diligence and make offers,” Penny wrote in his 11-page decision, published March 28. That means Erwin Hymer Group North America could have a new owner in about a week.