Embattled Vailo plunged into receivership in major loan dispute with National Australia Bank

Adelaide’s great race could soon be in the market for a new naming sponsor as Vailo finds itself facing major financial woes.

Embattled South Australian lighting company Vailo has been placed into receivership as a result of an apparent default on repayments to a major bank, official records show.

Documents filed with the corporate regulator on Thursday revealed a receiver has been appointed over the company, which millionaire entrepreneur Aaron James Hickmann, 36, owns.

Australian Securities Investments and Commission records show National Australia Bank called in the external administrator on Thursday.

Valo CEO and founder Aaron Hickmann. Picture Supplied

Aaron Hickmann with wife Maxine at the Adelaide 36ers and Adelaide Lightning MVP Dinner at the Titanium Security Arena. Picture: supplied

ASIC documents published late on Thursday show KordaMentha advisory firm was appointed by “instrument” through a “general security deed”, which experts say is an agreement used to secure personal or commercial loans and other business obligations owed to a lender.

The receiver is seeking to secure and take control of the company’s assets to have the debt repaid rather than take over its operations at this stage.

No details on the specific trigger for the appointment were disclosed on Thursday night nor the amount of outstanding debts.

It is the latest blow to the father of two, who left Adelaide for Queensland last year.

He has been accused of failing to pay other business invoices, property and jet ski loans as well as tax debts, on time.

He is also embroiled in an Australian Taxation Office investigation linked to different business dealings.

Vailo Founder Aaron Hickmann outside of his former Wayville business location, which is an eyesore, in January last year. He disputes all debt and tax claims. Picture: Ben Clark

Mr Hickmann, who parliament has also heard has been investigated for tax fraud, was unavailable for comment on Thursday night as was his lawyer.

He has denied tax fraud claims after ATO agents, with Australian Federal Police assistance, raided his Adelaide and Queensland offices in November.

No action has been taken in these investigations.

The Brisbane-based KordaMentha restructuring partner, who is controlling the administration, was also unavailable for comment.

Speculation is mounting that the Adelaide 500, which Vailo is the major sponsor, is negotiating with other parties including Drakes Supermarkets.

Motor Sport Board chief executive Mark Warren, Premier Peter Malinauskas and Vailo founder Aaron Hickmann with drivers at the Adelaide 500’s official launch in Victoria Square in 2022. Picture: NCA NewsWire / Kelly Barnes

Mr Hickmann, who has denied any wrongdoing, already faces losing two sprawling South Australian vineyards to pay disputed unpaid debts as well as a major Adelaide property at Parkside.

The Range vineyard property at Willunga that Vailo founder Aaron Hickmann owns, is up for sale to pay off debts, according to external receivers. picture: realestate.com.au

Gold Coast-based Mr Hickmann – who earns an annual income of $1m as Vailo founder – owns large Adelaide Hills and McLaren Vale properties through separate companies.

He lost control of the vineyards – collectively valued at more than $10m – in November last year.

External administrators acting for that lender, who bankrolled a mortgage worth at least $5m, alleged an outstanding property debt was more than $2.5m.

His lawyers disputed the debts.

Vailo is also being sued for more than $23m in the Supreme Court by a Chinese-backed property investment firm, which claims a subsidiary company Mr Hickmann owns has defaulted on lease payments.

Mr Hickmann, who owns several properties in SA, disputes all debt and tax claims against him or his businesses.