In the great British tradition cock-up trumps conspiracy! (Belief in cock-up being a fundamental tenet of an open society)
While the reasons for seeking protection under Chapter 11 are very much in the cock up category, both internal and external, the PR in the run up to the bankruptcy gives some pause.
The founder extended a secured loan pre bankruptcy which may be subject to conflict of interest/insufficient consideration challenge. He, or a vehicle under his control, has extended the D-I-P facility. The facility only being sufficient to fund a minimal reorganisation time scale.
This feels like a bear hug pre pack, without being a formal pre pack, where the founder has ensured he can take back control, cleanse liabilities, and by being the secured lender and D-I-P lender holding a privileged position at court. The variable is how much will the community’ help financially. If take up is poor this will be a Chapter 7 liquidation unless the founder increases the D-I-P facility.
With a dispersed set of unsecured creditors, and many of them in an executory contract relationship, the challenges to the plan may be diffuse and unfocused.
With a fleet of 10,000 flying and probably around $30mm in post reorganisation revenues (a very crude estimate what a slimmed down, cleaned up Van’s might produce ‘profitably’), this estate is too small, too specialist to attract a rival bidder. However, it does feel the founder is getting the company back in a healthier shape and relatively modest financial exposure. Quite smart even if current builders feel badly treated, perhaps too clever.
Anyone here with some petty savings?
Van’s Owes More Than $10 Million To More Than 25,000 Creditors
Dan wrote:
Van’s Owes More Than $10 Million To More Than 25,000 Creditors
While it is a major mess the total amount is rather low compared to other major aviation businesses. For Textron that would be just one bigger airframe delivered.
Kitplanes has an article about how this happened.
The picture painted is of a company overwhelmed by overlapping challenges, started by the primer issue with quickbuild kits and followed closely by a global pandemic that simultaneously cut into its manufacturing capacity, dramatically increased costs and, perhaps ironically, also greatly boosted demand. That in the effort to catch up with demand the company also lost track of internal costs and failed to increase kit prices (as one remedy) is one inescapable takeaway from the factual descriptions in the Chapter 11 declaration—and a good indication of the remedies needed to define its path forward.
Too much doom and gloom. Here is the “other” side of building aircraft 
As expected perhaps. I thought it could be more.
Three other kit manufacturers discusses the state of the industry (in light of Vans).
To make the above URL work, please see
https://www.euroga.org/forums/website/13231-posting-youtube-urls-on-euroga#post_292592
I have fixed up hundreds…
