On Friday evening, Van’s Aircraft filed its Chapter 11 Reorganization Plan with the Federal Bankruptcy Court. The court will set various hearing dates; the judge will sign a certificate to make it an official court document, which usually takes 3 to 5 days. After that, the officially filed plan will be mailed to approximately 40 thousand people who were previously notified when Van’s filed for bankruptcy. People with claims against the company will receive ballots to vote for or against the plan. Van's attorneys will collect the votes, tally them, and report to the court as it considers whether to approve or reject the plan.
The complete plan can be downloaded here https://storage.courtlistener.com/recap/gov.uscourts.orb.528157/gov.uscourts.orb.528157.113.0.pdf
Customers of Van's who made deposits on their orders before the bankruptcy can renew their orders or claim a refund. For those who choose not to renew their orders and have valid claims, claims will be classified as either Priority or Unsecured claims. Priority claims will be paid once the plan is confirmed or as soon as allowed, while unsecured claims will be paid at an estimated rate of 55% of the unsecured amount over the next three years. If the company had liquidated rather than reorganised under Chapter 11, it is estimated that creditors would have received only 4% of their claim amounts.
Van’s claims it has made significant strides towards its recovery goals since the initial filing in December. Despite the challenges, it claims to ship many kits, parts, and orders to customers weekly. The plan calls for new quality control, engineering, accounting, and technology positions to bolster efforts. Van's is also investing in replacing equipment and installing new business systems, including an MRP system, to enhance operations.
Van’s have undertaken to share additional information related to the plan filing after the court has completed its next steps, this is expected sometime next week.
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