A failed Queensland caravan manufacturer may have been trading while insolvent for three years, according to administrators, who say the company owes $14 million.
Australian Off Road (AOR) shut its doors in September after 26 years operating on the Sunshine Coast, becoming the second local van manufacturer after Zone RV to collapse within a year.
Nearly 50 customers face losing $2.25 million after making progress payments toward caravans that were not built.
They include Sandra Muller from NSW Southern Highlands, who stands to lose $101,000.
Sandra Muller has paid $101,000 towards her caravan, which was not built. (ABC News: Lucas Hill)
In a report to creditors on Tuesday night, administrators DVT McLeods detailed fresh allegations against directors Russell Evans and Steve Budden and said AOR may have been insolvent for more than three years.
Potential offences identified included insolvent trading, reckless or intentional dishonesty, failure to act in good faith, and improper use of position to gain advantage.
"We have a preliminary view that the company traded whilst insolvent from at least 30 June 2023," the report stated.
Administrators also said AOR's creditor bill had grown to $14 million, up from $9 million estimated last month.
The administrators said further investigations were required and that the results would be reported to ASIC, the corporate regulator.
The ABC has attempted to contact Mr Evans and Mr Budden.
Director plots buyout
Mr Evans is one of two parties offering to purchase the company out of administration.
He has pitched to investors seeking $2 million to resurrect AOR in a move that could leave existing customers empty-handed.
It is legal for a director to buy and transfer a company's assets into a new business if the sale is approved by creditors.
The ABC has seen an email from Mr Evans outlining his vision "to establish a new, financially disciplined premium off-road caravan manufacturing business".
His proposal offered 20 cents in the dollar for the company's assets, while the existing company's debts would not carry across.
Inside the Australian Off Road factory in China. (Supplied)
Mr Evans said the new business would have "a clean financial structure" and "a clear pathway to sustainable profitability and growth".
Mr Evans's proposal detailed projected annual revenue of $11.3 million with production of 84 caravans, or seven a month.
The new venture would "create a new, low-cost and scalable caravan business", he wrote.
Despite marketing itself as an Australian manufacturer and blaming imported Chinese vans for its demise, the ABC can reveal AOR was making chassis in China.
A separate company with a factory north of Shanghai was established in 2025 to reduce AOR's production costs.
The Chinese company is owed $518,000 but falls among the unsecured creditors.
Allegations detailed
AOR made a loss in three of the past four financial years, and had a negative asset position of $3 million when it collapsed, the creditors report stated.
Administrators engaged Argus Auctions to advertise the sale of the business or its assets.
After receiving 200 enquiries, 20 parties signed non-disclosure agreements, with feedback that "stock was outdated and poorly managed" and there was a "lack of operational systems and structure".
Russell Evans joined AOR about 2012 and became a director in 2021. (Supplied)
Only two parties made offers to buy the company, including Mr Evans's proposal.
The administrators said they were investigating allegations that caravans fully paid for by some customers had been delivered to other people.
The report noted the company's CCTV system ceased recording on September 9, the day the company stopped trading.
"Due to the limited clarity and quality of the footage … we are unable to determine with certainty … whether any caravans were moved within or removed from the premises," the report stated.
The administrators said they were "yet to receive a substantive response" from Mr Evans about the claims.
The report shows Mr Evans is claiming $67,000 in unpaid leave, while Mr Budden and his wife, Rhonda, are each owed $22,000 in holiday pay.
Steve Budden founded Australian Off Road from his garage in 2000. (Supplied)
AOR is owed $165,000 by two companies and a trust related to the directors, and the administrators have issued letters of demand to repay the outstanding money.
The administrators recommended creditors vote to delay the next meeting to allow time to sell the business.
"If the company was placed into liquidation, it is unlikely that there would be a distribution to the unsecured creditors [including customers]," the report said.
Administrators are claiming $283,000 for their services, more than 10 times their initial estimate.