Financial crisis engulfs Vailo founder Aaron James Hickmann as debt rows erupt amid default property and jet ski loan defaults
The financial crisis engulfing a millionaire entrepreneur and founder of the Adelaide 500’s main sponsor has escalated amid bitter new debt disputes in two states and a tax row.
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The financial crisis engulfing a millionaire entrepreneur and founder of the Adelaide 500’s main sponsor has escalated amid bitter new debt disputes in two states and a tax row.
Lenders are separately suing Gold Coast-based Aaron James Hickmann – who earns $1m a-year income as Vailo founder – in South Australia and Queensland over claims he defaulted on at least $614,000 of property and jet ski loans.
Mr Hickmann, who parliament heard has been investigated for tax fraud, further lost control this week of two large vineyards in the Adelaide Hills and McLaren Vale – valued at more than $10m – to external administrators acting for another lender, who bankrolled a mortgage worth at least $5m.
He denies the tax fraud claims after the Australian Taxation Office, with federal police help, raided his Adelaide and Queensland offices earlier this month.
External receivers also seized control of an inner eastern Parkside warehouse property worth at least $7.2m over claims a company Mr Hickmann’s a sole director of, defaulted on the loan more than nine months ago.
Revenue SA is also seeking unpaid land tax.
External administrator Lindsay Bainbridge said the outstanding property debt was more than $2.5m.
“Immediately on our appointment … we attended the properties and have spoken to a number of contractors,” he said.
“(They) also report being owed large sums of money – to the point where work on the vineyard has ceased and the vines are no longer being tended.
“Obviously this risks the value of the properties as a secured asset.”
External administrators said Vailo – the Adelaide 500 naming rights sponsor – was not involved in the row.
All claims, which are related to Mr Hickmann’s other companies, were still live last night but are disputed, according to his lawyer Greg Griffin, who said as his client had repaid $1.8m.
“The capital and principle have been paid and the rest we will see them in court,” he said.
Revenue SA, through the Commissioner of State Taxation, also placed a “caveat” – a buyer warning that invokes certain restrictions including on sales or land transfers – on October 14 over allegations of unpaid land tax on the Glen Osmond Rd, Parkside property, government documents show.
Mr Hickmann, who is already embroiled in a second, unrelated state land tax debt dispute over a Glenelg home and accused of failing to pay other business invoices on time, disputes all claims against him or his companies.
“I am tiresome of these follow ups, with old claims that have been resolved one way or another,” he said in a statement on Wednesday.
“They are causing my family and I mental stress beyond that is conscionable. Any dispute has been and is being dealt with and will be removed from the registrar (sic).
“That is why your relentless calls to third parties … have not been answered. Time to support business.”
Mr Hickmann, who moved to Queensland in January, had a lengthy conversation with Premier Peter Malinauskas in a government corporate area at last weekend’s after race concert.
Federal Circuit Court documents reveal a consumer protection division lawsuit was launched against Mr Hickmann, 35, in Brisbane in August this year over two 2024 Sea-Doo Gtx Ltd 300 jet skis worth more than $32,000 each.
In its statement of claim, Australian Motorcycle and Marine Finance Pty Ltd’s (AMAMF) states its “small claims” litigation began after he defaulted on a $64,407 loan, in March.
The five-year loan, which had a fixed, 10.45 per cent interest rate, was approved in February for monthly $1382.76 repayments, papers state.
Documents filed on behalf of AMAMF claim Mr Hickmann, a father-of-two of Hope Island, near Sanctuary Cove, told the lender he was self-employed, had a $1,000,551 yearly income as director of Vailo – formerly Valo – or no mortgage.
The finance firm has sought court orders to repossess the water crafts.
“Despite request (Mr Hickmann) has failed, neglected and/ or refused to remedy the default,” the claim stated.
No defence papers have been filed. A first hearing is listed in February next year.
The finance company’s lawyer declined to comment.
Marlbury Capital Lending Services Pty Ltd separately launched District Court action in July against Mr Hickmann and Ikara Viticulture Three Pty Ltd.
Court documents allege the company, of which Mr Hickmann is sole director, failed to repay a $550,000 loan over the Torrens Valley Rd, Birdwood vineyard despite guaranteeing “punctual payment”.
He emailed Marlbury on June 19 saying he anticipated drawdown clearance this week before agreeing settlement within days but this failed to occur, the court was told.
A default judgment was issued on October 14 for $596,424.20, records show.
A Marlbury spokesman said it accepted Mr Hickmann’s advisers’ “assurances” this week of repayment by Wednesday night. It is unclear if this has occurred.
On Monday, administrators for Bizcap, a Victorian small business lender, changed the locks on the 119.6ha Blackwood vineyard and the 42.9ha The Range property, 50km south of Adelaide.
The Parkside property was seized on Tuesday, Australian Securities and Investments Commission records show.
Melbourne-based Mr Bainbridge, of Pitcher Partners chartered accountants, said a “thorough investigation” had occurred since May including into Mr Hickmann’s property owning companies.
“At no time has Mr Hickmann or his lawyers disputed the debt against these entities,” he said.
“The default occurred more than nine months ago and repeated agreements have been put in place to allow Mr Hickmann time and opportunity to repay the outstanding debt in full.
“But this has not occurred.”
“We are progressing to sell the assets to recover the total debt owed, which is in excess of $2.5m.”
Both properties are already subject of a $214,370 creditor’s notice, which Mr Hickmann disputes.
Mr Griffin said: “It’s a squeeze play by a mezzanine lender – that’s how (they) make their money.
“We expect to set aside those appointments.
“We will initiate proceedings to claw back the usurious interest charges that have been unfairly applied.”
Asked about the land tax dispute, he replied: “There’s thousands of properties all through SA with these caveats. Why don’t you run an article about each of those.”
A Treasury spokeswoman declined to comment on specific cases but added: “A very low proportion of properties will ever have a caveat.
“They are only utilised as a last resort, when all channels and efforts to contact the landowner and resolve outstanding debt have been exhausted.”
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