Zone RV to be Liquidated as Police Pursue Fraud Investigation Against Director

It has been confirmed that Zone RV will be liquidated after it went into voluntary administration late last year.

The company is said to owe its creditors $42 million. Furthermore, nearly 150 of its customers are still awaiting $15 million in progress payments made for caravans that ended up not being constructed at all.

Zone RV to be Liquidated

According to a report by ABC News, creditors voted to liquidate the company during a three-hour virtual meeting that also included 100 customers of Zone RV and administrator Cor Cordis.

It should be noted, however, that it is being said that the sale of Zone RV is imminent, with Cor Cordis partner Rahul Goyal saying that the sale could be announced "later this week or early next week.

Another Cor Cordis partner, Kate Conneely, addressed concerns of buyers waiting to see if unfulfilled orders would be honoured by the buyer of the company.

"The sale may result in completion of additional caravans by the buyer," said Conneely.

Insolvent as Early as 2023?

A few days ago, Sunshine Coast News reported that Zone RV may have been since 2023.

"Conclusively determining a date of insolvency requires further investigation; however, it is likely that Zone RV has been insolvent since September/October 2024, though it could be as early as August 2023," Cor Cordis said in a statement.

After the company went into voluntary administration, around 240 employees were declared redundant.

The failure of Zone RV has been attributed to many factors, including poor financial management and constant changes to management.

"It is of note that Zone RV's failure can be generally attributed to the incurrence of substantial losses in its One Composites business, particularly from FY23 onwards," Cor Cordis pointed out.

In relation to this, a report has been lodged with Australian Securities and Investments Commission (ASIC) involving the company's only director, David Biggar.

Biggar is being accused of breaching the Corporations Act for allegedly trading insolvent since September 2024.