Adelaide organisers last week revealed a new three-year deal with fuel giant BP to replace VAILO, which was plunged into receivership in March.
The lighting technology company had backed the formerly Adelaide 500 event since its stunning return under the Peter Malinauskas-led Labor state government in 2022.
VAILO’s deal also involved the supply of its high-end big screen technology, which included eye-catching four-sided and three-sided units at either end of the front straight.
Doubled-sided screens also featured prominently along the straight as part of a supply contract that totalled 34 screens across 26 installations.
Asked if VAILO still owes the government money following the end of its three-year contract, Malinauskas suggested a resolution may involve assets such as the screens.
“We’re going into a process of reconciliation with VAILO in terms of where we’re at on the dollars that they’ve committed to us,” he said.
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“I’m very pleased that overwhelmingly, the government has been able to see its sponsorship arrangement with VAILO being honoured.
“There are more than just financial contributions that were made under that contract. There are other contra contributions.
“VAILO, of course, being a producer of video screens, for instance, is a good example there.
“And what we are exploring with VAILO at the moment is the possibility of what maybe a potential transfer of those looks like versus the other elements.
“So there is a reconciliation that is underway and we hope that will be concluded at some point in the not-too-distant future.”
VAILO was placed into receivership in early March as the result of an apparent default on repayments to National Australia Bank, per the Adelaide Advertiser.
The company’s founder, entrepreneur Aaron Hickmann, is also the subject of a federal bankruptcy action over alleged failure to repay debts.
Hickmann, who has denied all claims against him, responded to the receivership news in March with a post on social media that included reference to the Adelaide 500 sponsorship.
“One of our entities, VAILO, is in the process of refinancing with an international lender after a dispute with NAB,” he wrote.
“It is disheartening that Australian banks are not more supportive of entrepreneurial manufacturing businesses, especially in a challenging economic climate where such support is critical.
“VAILO proudly supports sport globally. Our naming rights partnership and supply of VAILO LED digital displays for the Adelaide 500 contributed to it being awarded Fan Favourite Event of the Year, three years in a row.
“As a South Australian company, I’m proud of this achievement and encourage local businesses to support such events.
“We now focus on international opportunities to maximise returns and grow the VAILO brand.”
Hickmann flagged in the post a previously announced plan to move the company’s manufacturing efforts to Queensland.
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