That's the reason for bankrupty.
There needs to be a "new piper" er I mean "new vans" to divorce itself from the liability of the legacy fleet.
That's not the strict meaning of chapter 11 vs 7 but I bet they find a way to transfer the assets to a new legal entity.

Over the next few months they expect over a million dollars in cash from new orders.

I love Van’s - the company, the design, the planes….I’ve always wanted an RV-8 in the hangar.

But I’m not sure how you could talk me into putting down money on a new kit right now.

I think our flying RV's just went up in value a little more.

Dave

Would be interesting if…

New Van’s Co can prove new kits are top quality and the firm is solvent.

Old kits, partially completed projects are hard to sell because of suspected defective parts, value goes to near zero.

In that case New Van’s might emerge with a viable business; people will buy the new kits and there’s no competition from the secondary market.

The losers in this scenario are a the cohort of builders who got the “Old Vans” kits essentially lose their parts investment, and any labor invested in putting together suspect parts.

That cohort of builders will either have to start over with new (expensive) parts from New Van’s or give up. The purpose of bankruptcy would be to eliminate claims from this group, because that financial hole can’t be filled. Feels more like liquidation / NewCo than a reorganization.

Exactly. There needs to be a newco with no liability for the old kits. Beyond that, the newco needs to be trusted to deliver quality new kits or the new orders won't show up in real life like they do on a spreadsheet. This is not going to be easy.

As far as all the people stuck with laser cut kits and parts of questionable safety and value? I don't see any way they get compensated unless the suppliers at fault are big wealthy companies with bad lawyers. In other words, they are screwed. There is simply no source of funds to compensate them.

Between this and the 737 Max, hopefully the aviation world is waking up to the value of quality engineering and processes....

I dunno.. I'd be a little concerned about both the bankruptcy and whether or not the plane I was buying had some laser cut holes somewhere. This situation isn't good for anyone.

Just eyeballing the financials it appears that they probably need to double prices in order to have positive cash flow, and also have adequate return to pay off the loan and the clowns from Hamstreet.

https://hamstreet.net/about-us/team/

Only if you factor in the 1.2 in laser cut remediation costs and the 1.2 of contingency. Looking at it with rose colored glasses, they can get by with 50% if the sales are within historical averages. The real reason for the bankruptcy is right there on the spreadsheet.Transfer the 1.2 in remediation to the existing kit builders, reduce the 1.2 contingency to zero. The loans need to be listed as paid in capital. Hopefully the bankruptcy judge will not let Vans be a secured creditor.

That's why the flying ones may be more valuable. I don't think there are any flying now with laser cut holes. If there are, it ain't many and they were completed very recently.

What is the Egyptian Airforce fund release and final payments listed? Why would final payment and a different fund release be on the same day?

Odd the Restructuring estimate appears to be a specific number where the Lycoming and Hartzell deposits are a round number. I would think that the deposits would be known and restructuring figures not known.

I dunno.. I'd be a little concerned about both the bankruptcy and whether or not the plane I was buying had some laser cut holes somewhere. This situation isn't good for anyone.

If I’m understanding this correctly, I would hope the opposite. My understanding is that Richard Van Grunsven sold the company to the employees and that they are responsible for this mess. Now he’s coming out of retirement and throwing his own money at the problem to try to save what he built, and I’m sure, his legacy. It’s a sad deal.

Only if you factor in the 1.2 in laser cut remediation costs and the 1.2 of contingency. Looking at it with rose colored glasses, they can get by with 50% if the sales are within historical averages. The real reason for the bankruptcy is right there on the spreadsheet.Transfer the 1.2 in remediation to the existing kit builders, reduce the 1.2 contingency to zero. The loans need to be listed as paid in capital. Hopefully the bankruptcy judge will not let Vans be a secured creditor.

If I’m understanding this correctly, I would hope the opposite. My understanding is that Richard Van Grunsven sold the company to the employees and that they are responsible for this mess. Now he’s coming out of retirement and throwing his own money at the problem to try to save what he built, and I’m sure, his legacy. It’s a sad deal.