In a video posted to YouTube April 12, 2024, Clyde Hamstreet, whose firm, Hamstreet & Associates, works with companies in distress, gave an update on the reorganization of Van’s Aircraft during its bankruptcy.
The company filed its official Chapter 11 Plan of Reorganization with the Federal Bankruptcy Court on March 29, 2024. A hearing will be held May 15, 2024.
The plan is expected to become official about two weeks later, on June 1.
“Van’s customers who made deposits on their orders prior to the bankruptcy and chose not to renew their orders and have valid claims will have their claims classified as Priority and/or Unsecured claims,” Van’s officials said. “Priority claims will be paid upon confirmation of the plan or as soon as allowed, and the unsecured claims will be paid at an estimated rate of 55% of the unsecured amount over the course of the next three years. Had the company liquidated rather than reorganizing under Chapter 11, it is estimated that creditors would have received only 4% of their claim amounts.”
Hamstreet noted that 85% of customers opted to renew their contracts at updated prices, which ensures a backlog of business to help the company pay off its obligations.
“This will be a good recovery plan for everybody,” Hamstreet says in the video.
For more information: VansAircraft.com