In a report to creditors on Tuesday night, administrators DVT McLeods detailed allegations against directors Russell Evans and Steve Budden, including 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.
AOR shut its doors in September after 26 years on the Sunshine Coast, becoming the second local caravan manufacturer to collapse within a year after Zone RV. Administrators said the creditor bill had grown to $14 million, up from $9 million estimated last month, and that further investigations were required, with results to be reported to the corporate regulator ASIC.
Nearly 50 customers face losing $2.25 million after making progress payments toward caravans that were never built. They include Sandra Muller from the NSW Southern Highlands, who stands to lose $101,000.
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.
His proposal offered 20 cents in the dollar for the company's assets, with existing debts not carrying across. In an email seen by the ABC, Mr Evans outlined his vision "to establish a new, financially disciplined premium off-road caravan manufacturing business" with "a clean financial structure" and "a clear pathway to sustainable profitability and growth". He projected annual revenue of $11.3 million with production of 84 caravans, or seven a month.
The company marketed itself as an Australian manufacturer, though supplied images show its factory in China, and AOR had blamed imported Chinese vans for its demise.