Address to the Fans Lays Out Case for Restructuring

"I realize that the word "bankruptcy" here is shocking, however the key word here is "reorganization", which implies continued operation and improvement. Our doors will remain open and we will continue to work hard to serve our customers," said VanGrunsven.

He tags in Van's Chief Restructuring Officer Clyde Hamstreet to explain the changes. With the company in Chapter 11, all financing will require court approval. The court will supervise the firm in its normal course of business, building and selling kits. "Customers with existing orders will be contacted in the next few days regarding pricing changes." Hamstreet said. "Customers will be sent an email that will take them to a portal with the details of their existing order, the amount of their deposits, and Van's proposed modifications. Van's will apply the full prior dollar amount of deposits and payments to the modified kit orders. Treatment of deposits made on engines, propellers, and avionics will be determined later."

Van's will file this proposed plan of reorganization within the next 90 days, describing how the company will operate in the future, how its financial obligations that existed at the time of filing will be dealt with," Hamstreet continued. "The intent is to create a pathway that preserves the company's ability to provide ongoing support for its customer suppliers and employees. The laser cut part issue is a complex and expensive matter, and the plan must ensure it will be resolved in a way that is both timely and reasonable for affected customers."

Hamstreet is optimistic about how Chapter 11 will play out for Van's Aircraft. "Based on my experience the prognosis is very strong. Van's has a dedicated, involved founder and Dick VanGrunsven and his family have brought significant personal funds to the table in their commitment to see the company through this period," added Hamstreet. He passed the ball back to VanGrunsven for final remarks.

"On behalf of myself and all of us here at Van's, we sincerely regret the added financial and time burdens that this situation imposes on you and your pursuit of dreams to build and fly RVs. I want to apologize for the lack of definitive communication over the past month or more. It has taken longer than expected to complete our internal assessment and decide on our action plan," said the company Founder.

VanGrunsven closed, saying "I want you to know that my wife and I are providing an additional multi-million dollar loan to the company to help ensure that Van's can successfully complete the important and necessary work to bring us out of this bankruptcy period on a strong and stable footing."

FMI: Van's Youtube comments