News Column

McMahon's RV seeks bankruptcy protection

June 19, 2014

By Lily Leung, The Orange County Register



June 19--McMahon's RV, once one of the largest recreation vehicle companies in the state, has filed for Chapter 11 bankruptcy protection, court records show.

The Westminster-based company has faced a string of problems recently, including a legal battle with a key lender, a stream of customer complaints and a state investigation.

Mega RV Corp., which does business as McMahon's RV, estimates its assets total $10 million to $50 million, based on its Chapter 11 petition, which was filed in U.S. Bankruptcy Court in Santa Ana this week. The company, owned by Brent McMahon, reports it owes $10 million to $50 million to as many as 999 creditors.

Its recent spate of problems appears to have stemmed from a soured deal with GE Commercial Distribution Finance Corp., the company that provided McMahon's credit to finance its RVs. GE accused McMahon's of defaulting on payments and continuing to sell financed vehicles to customers, according to its lawsuit.

The legal matter, which froze McMahon's transactions, is now on hold due to bankruptcy proceedings, court documents show.

Consumers continue to share their discontent with the company. Some say they paid for RVs and services but have gotten nothing in return.

McMahon's also is under the scrutiny of the California DMV, which has launched an investigation. The agency has not provided specifics, citing the ongoing probe.

Irvine-based attorney Robert P. Goe, who represents the RV company in the bankruptcy case, did not respond to a request for comment.

Paul Schilperoort, who has been serving as a spokesman for the firm, also could not be reached for comment.

Contact the writer: lleung@ocregister.com or (714) 796-7927

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(c)2014 The Orange County Register (Santa Ana, Calif.)

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Source: Orange County Register (CA)


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