Failed caravan maker Highline Caravans probed for loans, wages to director and brother

The liquidator of bust Melbourne caravan maker Highline Caravans has raised concern over hundreds of thousands of dollars in loans and wages given to its director before its collapse.

The liquidator picking through the financial wreckage of a failed Melbourne caravan maker is now probing hundreds of thousands of dollars in loans and wages given to the director and a family member before its collapse.

Highline Caravans, which designed and made custom caravans in Campbellfield, went into liquidation in May this year, owing $1.3m including $1.2m to 64 unsecured creditors.

Appointed liquidator Altan Djenab, from Wild Apricot corporate insolvency and advisory services, said further investigations were needed into loans drawn by the director Aleksandar Vitanov and his brother Vladimir Vitanov in the years before the company collapsed, and whether the money could be recovered for creditors.

A liquidators report for FY23 detailed “beneficiary loans” to both Aleksandar and Vladimir to the sum of $372,000. This grew to $524,000 by May 2024.

Highline Caravans designed and made custom caravans in Campbellfield. Picture: Supplied

Mr Djenab has also expressed concern about the possibility the owners paid themselves inflated wages.

“(Investigations are needed) to determine whether the wages drawn by both Aleksandar and Vladimir Vitanov in the 2023 and 2024 financial years were fair and reasonable having regards to their positions held in the company and to the financial position of the company at that time,” his report notes.

Creditors recently voted to put $30,000 more towards Mr Djenab’s investigations after he said he was without funds to conduct further inquiries into the company’s affairs.

Mr Djenab said creditors had brought to his attention that their business dealings were primarily with Vladimir.

“We have very little information at this stage of our investigations to establish whether Vladimir Vitanov acted in the capacity as a de facto director of the company,” he said.

Highline Caravans went into liquidation in May this year, owing $1.3m. Picture: Supplied

Mr Djenab also identified payments made to seven creditors in the six months prior to liquidation that required further investigations.

This includes five transactions to one creditor, totalling $92,329, which Mr Djenab alleged constituted preferential payments.

Preferential payments are payments or asset transfers to creditors that give them an advantage over the other creditors.

“I do not believe that the creditor has a valid defence. A letter of demand for recovery has been issued,” Mr Djenab said.

Mr Djenab alleged the company may have traded while insolvent from “at least” June last year.

Trading while insolvent means a company took on new debts when it knew it couldn’t pay them back.

“We consider that investigations into the financial position of the director is warranted prior to bringing an action for insolvent trading, should a claim exist,” he said.

“At this stage we have little information regarding the director’s personal asset position.”

Mr Djenab said the company may have traded while insolvent from “at least” June last year. Picture: Supplied

Plant and machinery equipment assets identified by Mr Djenab were recently sold at auction for $35,336.

This is insignificant compared to the amount of debt owed to creditors.

The Australian Taxation Office is the largest creditor owed $236,106.

Other major creditors RV supply stores including Caravan and Camping Aus owed $110,931, NCE owed $86,644, and Plenty River Plumbing owed $72,018.

Insurance agency Gallagher and Bassett is owed $50,407. No employees are owed money.

Aleksandar, who has run the business since 2015, attributed the company’s failure to a downturn in the caravan industry and a reduction in orders.

He was the previous director of Viking Caravans and Campers Australia from 2017 to 2019.

Highline’s caravan range spanned 13 different models, including an all electric van.

Highline was contacted for comment.