Vailo founder Aaron James Hickmann declared bankrupt by court after failing to repay $600,000 loan

The decision automatically disqualifies the SA entrepreneur from managing corporations or holding positions such as director of more than 50 of his companies.

Embattled Vailo founder Aaron James Hickmann has been declared bankrupt after failing to repay an almost $600,000 loan.

The move means the millionaire South Australian entrepreneur, who is now based in Queensland, is automatically disqualified from managing corporations or holding positions such as director of more than 50 of his companies.

It came after Marlbury Capital Lending Services Pty Ltd pursued the sequestration action, claiming Mr Hickmann had not repaid a $596,424.20 loan.

The Australian Taxation Office just weeks ago joined the court action as a “supporting creditor” over alleged unpaid taxes.

The court had previously heard the ATO had three notices against Mr Hickmann but it is understood it has since withdrawn three assessments.

Mr Hickmann has disputed all debt and tax claims against him and his business.

Vailo founder Aaron James Hickmann. Picture Mark Brake

However, the Federal Circuit Court in Adelaide on Wednesday made orders declaring Mr Hickmann bankrupt.

It also ordered the 36-year-old cover Marlbury Capital Lending Services’ costs to the amount of $6210, to be paid from his estate.

Mr Hickmann’s lawyer Greg Griffin described the bankruptcy declaration as “unfortunate”.

“It was unfortunate because there was in place a refinancing arrangement which would have seen the creditor paid off in full but the registrar said that sufficient time has passed and made that order,” he said.

Mr Griffin said his client, a father-of-two, was now considering his legal options in relation to the order.

Legal options available to those subject to bankruptcy orders include applying to the court for a stay of the order, which would give time to appeal the case or resolve the debt.

It is the latest blow for Mr Hickmann whose lighting company Vailo was placed into receivership in early March as a result of apparently defaulting on repayments to a major bank.

Aaron James Hickmann has been declared bankrupt. Picture: Supplied

Australian Securities and Investments Commission records revealed National Australia Bank appointed an external administrator in a bid to recoup outstanding debt.

Details on the debt have not been disclosed.

Mr Hickmann had previously told other lenders he earnt $1 million a year as the founder of Vailo.

In Mid-March it emerged that Vailo would no longer be the Adelaide 500s main sponsor after confidential talks regarding a two-year extension collapsed.

Vailo had been the Supercars event’s naming sponsor since the state government revived the event in 2022.

Last week the government unveiled a new name, format and sponsor for the Supercars event.

It will now be known as the bp Adelaide Grand Final and will include an extra 100km race.

The event will take place in Adelaide from November 27-30.

Originally published as Vailo founder Aaron James Hickmann declared bankrupt by court after failing to repay $600,000 loan