Vailo owes SA Motorsport Board, GWS Giants, University of Adelaide following collapse

The huge debt owed by failed lighting company Vailo has been revealed, with AFL clubs and the SA Motorsport Board among the biggest creditors. See the full list.

The state government body behind the Adelaide 500 Supercars event has emerged as one of the largest creditors of failed lighting company Vailo.

The company’s huge debt pile has left AFL clubs, sporting groups and a long list of South Australian companies millions of dollars out of pocket.

According to a new report on the company’s activities and property filed with ASIC, more than 160 unsecured creditors are owed close to $5m following Vailo’s collapse into receivership in March.

It also reveals close to 50 employees have been left chasing more than $700,000 in unpaid entitlements.

Among the biggest creditors are sporting groups that Vailo had sponsorship agreements with, including the SA Motorsport Board – organiser of the Adelaide 500 – which claims its owed close to $430,000.

The state government body ditched Vailo as the event’s main sponsor in March – after receivers were appointed – and later revealed the event would be known as the bp Adelaide Grand Final. Vailo had been naming rights sponsor since 2022.

In November, a week before the last Vailo Adelaide 500, Premier Peter Malinauskas claimed Vailo founder and director Aaron Hickmann had “met his obligations’’ with regards to the company’s ongoing sponsorship of the event.

However a spokesman said on Thursday that the situation had since changed, and the government was now working through a “reconciliation” of the outstanding debt, which was complicated by the fact that part of the sponsorship deal involved Vailo providing large video screens and other equipment rather than cash.

The SA Motorsport Board – the body behind the staging of the Adelaide 500 – claims former naming rights sponsor Vailo owes it close to $430,000.

“As previously discussed, the South Australian Motorsport Board is in a process of reconciliation regarding Vailo and looks forward to a resolution,” the spokesman said.

Meanwhile, AFL clubs Greater Western Sydney and Hawthorn claim they’re owed $406,656 and $82,500, respectively, after they partnered with Vailo on sponsorship deals in recent years.

GWS announced in February 2023 that Vailo had been secured as a major partner of the club, with its training facility at Sydney Olympic Park known as the Vailo Community Centre.

Hawthorn extended its partnership agreement with Vailo in April last year following an initial two-year agreement with the club’s men’s and women’s programs.

Other major creditors include the University of Adelaide ($150,700), Football SA ($55,000) and the Norwood Football Club ($30,795).

However the report does not disclose the debt to secured creditor National Australian Bank, which called in receiver Robert Hutson from KordaMentha in March to take control of the company. The ATO – another creditor – is yet to lodge its claim.

Mr Hickmann, who disputes NAB’s debt claims, said he was working on a rescue plan to take back control of the company, and would pitch it to the bank next week for its consideration.

“The formal refinance is commercial-in-confidence and will ensure creditors and employees are paid,” he told The Advertiser on Thursday.

Vailo founder Aaron Hickmann. Picture: Ben Clark

“This rescue plan is being led by my family and will ensure an Australian entity remains. As long as the receivers and NAB are commercial, play ball, and if the public cheer us on, we will ensure Vailo remains as the last advanced manufacturer of lighting left in Australia.

“Many significant manufacturing industries and companies have left Australia, I will ensure Vailo is not another statistic.”

Mr Hutson would not confirm how much NAB was claiming, but said investigations into Vailo’s financial position, and the actions of Mr Hickmann as director, had commenced.

“At this stage I haven’t received a final claim from the ATO but I note that the ATO has been involved in the bankruptcy proceedings against Mr Hickmann,” he said.

“Pursuant to the Corporations Act, I am required to notify ASIC of any (director) offences.”

Mr Hickmann, who relocated to the Gold Coast last year after establishing Vailo 13 years ago, was bankrupted last month after failing to repay an almost $600,000 loan.

The latest report reveals that while Vailo was amassing millions of dollars in debts, the company was also buying a fleet of luxury vehicles, including seven Teslas, three Land Rovers and two Chevrolet Silverados.

Mr Hickmann said most were used for company purposes, but admitted a 1923 Ford Model T was a personal vehicle.

VEHICLES OWNED BY VAILO

7 x Tesla Model 3

2 x Chevrolet Silverado

2 x Land Rover Defender 110

Chevrolet Camaro

Holden GTS

Kia 2023 EV9 GT-Line Wagon

Great Wall Cannon

Land Rover Range Rover

1923 Ford T1915

Originally published as Vailo owes SA Motorsport Board, GWS Giants, University of Adelaide following collapse