I don't know what happened here, but if someone told me that a manager fired all of the dev team and replaced them with cheaper overseas replacements, I wouldn't be surprised.
Years ago a small telco I worked for bought an equipment from rather reputable manufacturer at some point. A year or so later we discovered a grave bug in the software. There was a month or so silence from manufacturer and they just bought all equipment back. We found out later that entire team working on this equipment was fired during restructuring by accident (!) and there wasn't any knowledge about this equipment left in the company.