Short circuit for creditors as Vallec debt doubles to $7.3 million

TURNED SOUR: Vallec signed on as a sponsor of the Sydney Swans in 2018. The group of companies has gone into liquidation owing more than $7 million, including $108,000 to the Sydney Swans AFL team.

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.

Toby McCosker

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.

CLOSED SHOP: The former Beresfield headquarters of the Vallec group of companies that were placed in liquidation owing more than $7 million. The site was sold in February. Picture: Marina Neil

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.

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