AS the dust settles on the corporate corpse of Hunter electrical and mechanical services company Vallec, there is more bad news for creditors.
The debt owed by the group of companies has more than doubled from $3 million, as initially estimated by the director, to more than $7.3 million.
Liquidator Jarvis Archer, of Revive Financial, said no return was expected for creditors and the amount owed could continue to grow.
Vallec, Vallec EP and Vallec MP were voluntarily placed in liquidation in June. The companies, owned by Tobias McCosker, 31, of Maitland, were previously known as Valley Electrical and Valley Electrical and Air.
In March last year, Vallec signed on as a sponsor of the Sydney Swans football club for the 2018 AFL season and the club is listed as a creditor for $108,817.
At the time, Sydney Swans chief executive Andrew Ireland said the club would be working with Vallec to help "establish their own programs in support of Indigenous youth employment and gender equality in the workforce".
The company also used to sponsor Surfest.
In the latest report to creditors, Mr Jarvis estimated that Vallec owes $394,299, Vallec EP $5.7 million and Vallec MP $1.2 million.
The three companies had $438,629 in unpaid employee entitlements, including $244,781 owed in superannuation.
According to Mr McCosker, the companies failed due to the collapse of major debtor Ware Building, under quoting of jobs, performance issues, contract disputes and legal action.
Company records indicate Vallec EP wrote off bad debts of $298,174 in 2018.
Vallec's headquarters in Elwell St, Beresfield, was sold in February for $1.45 million, a few months before the companies failed.
It was owned by a company called R&T Holdings, that was half owned by Mr McCosker and half owned by a Maitland woman.
R&T Holdings purchased the commercial site in 2015 for $361,900.
Vallec's former website said the business was started by Mr McCosker with a single van and grew to having more than 20 employees.
The business, that also had an office Sydney, carried out electrical work on large commercial construction projects throughout the Hunter and Sydney.
The company won four Hunter Region Business Excellence Awards from 2015 to 2017, including twice winner of the construction, home improvements/trade and manufacturing category.
Vallec was also honoured for best improvement in work, health and safety and was the overall winner of the electrical work, health and safety category in 2016.
While you're with us, did you know the Newcastle Herald offers breaking news alerts, daily email newsletters and more? Keep up to date with all the local news - sign up here.
- Get behind the scenes with the Newcastle Herald's award-winning news photography team
- Maitland still wasting away while Newcastle makes millions from mega-dump
- Jarrod Mullen's life 'spiralled out of control' in lead-up to drug supply charges: Court
- Risk rating elevated for Little L Complex, Crumps Road bushfires near Wollombi as 20,000 hectares burns
- Shock as landmark judgment reveals what the Therapeutic Goods Administration didn't know
- Westpac Rescue Helicopter Service wins court injunction to stop Newcastle council vote on Knights centre of excellence