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Meeting of the creditors

I'm overseas in the Philippines and received notice of the meeting only this morning at 04:30 local time due to time and date differences. I logged in in time to hear the final 10 minutes of the meeting, but when I tried to ask a question it was apparent I could not be heard. My question is, is there a law firm that can be used to handle filing an objection with the court? I simply can't do this myself from Asia.

I don't intend to continue with the construction of the aircraft, I have three competed kits paid for (post laser cutting) and delivered sitting in the US which perhaps I can sell, but intend not to take delivery of the remaining kits or the engine and propeller ordered thru Vans.

The court or Van's lawyer are not allowed to provide legal advice or refer you to a particular lawyer anyway so you wouldn't have gotten a straight answer.

The Oregon bar association has a neutral lawyer referral service:


if you don't know a lawyer I would contact them.

Oliver
 
As they were running out of time. the judge said they would provide an email address to send additional questions. Was I the only one that missed that (or was that possibly only communicated to those still in the phone queue?)
That was the trustee Mr. Arnot, not the judge. He did a bad job announcing the email address but I heard him talking with Mr. Conway and it was decided that the trustee should field the emails. His email is
[email protected]
 
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First I am not a lawyer so don't take this as legal advice but my opinion. Yes, you should have the trust file a claim. As I understand your post, the trust has/had a credit balance on the books with Vans. There is not any outstanding orders or contracts. As such the credit balance should have been listed as a liability on Vans balance sheet. Through the bankruptcy process those liabilities, including the credit balance, are frozen and only will be paid, if paid at all, over time. So at this stage the credit balance has been made zero. Thus a claim as an unsecured creditor needs to be made so the trust can get in line for re-payment. Be sure and explain the situation on the claim form , scan and attach supporting documentation such as a statement or invoice from Vans showing the credit balance. Be sure to mark the priority box, as this may be considered a deposit on hold which means you can claim $3,350 as a priority claim. Just means priority claims are considered for payment before the remainder.

It is important to file a claim as you have no outstanding contract to renegotiate/accept/reject. So the only recourse to get the credit back is to file a claim.
File a claim here: https://onlineclaims.bmcgroup.com/VansAircraftInc/claim/filing410

JJR
Thank you very much for your words of wisdom JJR - truely appreciate your help here. We'll get it underway.
 
The information on the call re: QB assemblies was clear. Assemblies will not be replaced, nor will Van's pay for have someone fix it for creditors. QB creditors will get replacement parts the same as SB creditors that have LCP issues. I wonder how many free parts replacement will sit on shelf vs be used to build.

Now that the testing shows all LCP parts are good, even red parts, I'm not sure why Van's is spending the money to replace them as a goodwill measure during bankruptcy. Those funds would be better used to help people who are facing huge increases.

I say this as someone who has LCP and luckily, only facing as increase for a finish kit. I really feel for the guys that delayed receiving their orders to help out others because they are facing the highest increases.
 
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The information on the call re: QB assemblies was clear. Assemblies will not be replaced, nor will Van's pay for have someone fix it for creditors. QB creditors will get replacement parts the same as SB creditors that have LCP issues. I wonder how many free parts replacement will sit on shelf vs be used to build.

Now that the testing shows all LCP parts are good, even red parts, I'm not sure why Van's is spending the money to replace them as a goodwill measure during bankruptcy. Those funds would be better used to help people who are facing huge increases.

I saw this as someone who has LCP and luckily, only facing as increase for a finish kit. I really feel for the guys that delayed receiving their orders to help out others because they are facing the highest increases.
because they are not good...mine has LCP spatter all over them and every dimple cracks. I could give a damn on what the engineers say. there are larger issues than just...your aircraft will last 130000 hrs. I don't want them in my aircraft and they wont be. Namely...they will always have the LCP stigma attached to them....you dont know what SB's will affect LCP aircraft in the future...your RV will be worth less....if something happens in the future your RV might be grounded. like I have always said....its just not all about the "engineering evaluation"...you have other considerations which ....well......are just not being considered. All I see is a massive increase in the part cost with a "bonus" 25% discount on blue and green parts to only make them 50% more expensive to replace substandard parts you already paid for. I'm sick of hearing about these parts from those not affected. If LCP is so good...why have they stopped doing it?
 
because they are not good...mine has LCP spatter all over them and every dimple cracks. I could give a damn on what the engineers say. there are larger issues than just...your aircraft will last 130000 hrs. I don't want them in my aircraft and they wont be. Namely...they will always have the LCP stigma attached to them....you dont know what SB's will affect LCP aircraft in the future...your RV will be worth less....if something happens in the future your RV might be grounded. like I have always said....its just not all about the "engineering evaluation"...you have other considerations which ....well......are just not being considered. All I see is a massive increase in the part cost with a "bonus" 25% discount on blue and green parts to only make them 50% more expensive to replace substandard parts you already paid for. I'm sick of hearing about these parts from those not affected. If LCP is so good...why have they stopped doing it?
They say they stopped it because it costs more. How they calculated the cost is the question. Sure, buying from an outside supplier vs their in-house "costs" might look higher, but it all depends on how they depreciated their equipment and lots of other factors. Vans does not have a stellar background on how costs are calculated after all. It will take time to build back credibility. I am willing to wait and hopefully credibility and transparency will return. Time as always will tell.
 
because they are not good...mine has LCP spatter all over them and every dimple cracks. I could give a damn on what the engineers say. there are larger issues than just...your aircraft will last 130000 hrs. I don't want them in my aircraft and they wont be. Namely...they will always have the LCP stigma attached to them....you dont know what SB's will affect LCP aircraft in the future...your RV will be worth less....if something happens in the future your RV might be grounded. like I have always said....its just not all about the "engineering evaluation"...you have other considerations which ....well......are just not being considered. All I see is a massive increase in the part cost with a "bonus" 25% discount on blue and green parts to only make them 50% more expensive to replace substandard parts you already paid for. I'm sick of hearing about these parts from those not affected. If LCP is so good...why have they stopped doing it?
I never listen to the engineers. I listen to the people on here!
 
I never listen to the engineers. I listen to the people on here!
I do listen to the engineers when the rhetoric is not contrived for survival...which some may disagree with. but this whole..."hey cracks are just fine" is just that. And I am sure they are right...that is most of those QB aircraft will outlast many owners...but they don't want the costs to fix them. And yes...of course this is easy to understand why...for the survivability of the company. Hey this time will come and go...people will forget about the whole LCP disaster EXCEPT those caught up in it.
For builders like myself where I just have to replace not yet fitted wing ribs at my own cost to rid myself of these defective parts it would be stupid to fit them. I am not affected as some folk on here. I am really sorry for them.
 
because they are not good...mine has LCP spatter all over them and every dimple cracks. I could give a damn on what the engineers say. there are larger issues than just...your aircraft will last 130000 hrs. I don't want them in my aircraft and they wont be. Namely...they will always have the LCP stigma attached to them....you dont know what SB's will affect LCP aircraft in the future...your RV will be worth less....if something happens in the future your RV might be grounded. like I have always said....its just not all about the "engineering evaluation"...you have other considerations which ....well......are just not being considered. All I see is a massive increase in the part cost with a "bonus" 25% discount on blue and green parts to only make them 50% more expensive to replace substandard parts you already paid for. I'm sick of hearing about these parts from those not affected. If LCP is so good...why have they stopped doing it?
Look you can hate it or like it but at least now you know Vans position on this and nobody can tell you “just give them some time”. They stated it under oath in court.

The way I understand it is that your only recourse left is to file a claim and argue it’s valid with Vans arguing it’s not. This sounds complex enough that you really need to talk to a lawyer not to a public forum.

I think some of the trustee questions were along the lines of why is Vans shipping red parts for free instead of paying the creditors. He let it slide after getting links to the videos. Would not be surprised if he brought that question up again.

Good luck!

Oliver
 
I do listen to the engineers when the rhetoric is not contrived for survival...which some may disagree with. but this whole..."hey cracks are just fine" is just that. And I am sure they are right...that is most of those QB aircraft will outlast many owners...but they don't want the costs to fix them. And yes...of course this is easy to understand why...for the survivability of the company. Hey this time will come and go...people will forget about the whole LCP disaster EXCEPT those caught up in it.
For builders like myself where I just have to replace not yet fitted wing ribs at my own cost to rid myself of these defective parts it would be stupid to fit them. I am not affected as some folk on here. I am really sorry for them.
Those who are dismissing Vans engineers are not correct, those who are dismissing builders who feel uncomfortable with cracking parts in their aircraft are also not correct. I specifically recall one lecture from my strength of materials professor during undergrad. "You will reach the users comfort limits well before you ever come close to the structural limits." His example was if you build a bike that the engineering says is sound, but the deflection of the frame felt by the user while riding is enough to make the user uncomfortable then that is a problem. You do not need to recall the bike, but making changes for the next iteration to make users feel more comfortable is important. That is the situation we are in at the moment. If you believe Vans engineers ethics are compromised because the analysis was done after the fact you should not be building this aircraft. I don't believe that any builder truly thinks this is the case and is just mad that Vans rescinded the statement that all LCP will be replaced, and questioning engineering is the best argument trying to hold them to that statement. As an engineer I have to do analysis on countless non conformities when machine shops mess up. My boss asks if the part is fine with these errors, so far not a single one of these errors has actually resulted in the part needing to be scrapped. You are well within your right to acknowledge that while the engineering may be sound your threshold of comfort has passed its limit. That is the situation I am in. I do not believe Vans owes me anything related to LCPS. I will gladly pay to have them replaced to cross back into the realm of comfort, but that is my decision. This stopped being an engineering discussion and has become a public relations discussion with premature statements from the company.
 
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Those who are dismissing Vans engineers are not correct, those who are dismissing builders who feel uncomfortable with cracking parts in their aircraft are also not correct. I specifically recall one lecture from my strength of materials professor during undergrad. "You will reach the users comfort limits well before you ever come close to the structural limits." His example was if you build a bike that the engineering says is sound, but the deflection of the frame felt by the user while riding is enough to make the user uncomfortable then that is a problem. You do not need to recall the bike, but making changes for the next iteration to make users feel more comfortable is important. That is the situation we are in at the moment. If you believe Vans engineers ethics are compromised because the analysis was done after the fact you should not be building this aircraft. I don't believe that any builder truly thinks this is the case and is just mad that Vans rescinded the statement that all LCP will be replaced, and questioning engineering is the best argument trying to hold them to that statement. As an engineer I have to do analysis on countless non conformities when machine shops mess up. My boss asks if the part is fine with these errors, so far not a single one of these errors has actually resulted in the part needing to be scrapped. You are well within your right to acknowledge that while the engineering may be sound your threshold of comfort has passed its limit. That is the situation I am in. I do not believe Vans owes me anything related to LCPS. I will gladly pay to have them replaced to cross back into the realm of comfort, but that is my decision. This stopped being an engineering discussion and has become a public relations discussion with premature statements from the company.
And after all that two questions. Do you believe in the public’s eye there will be a stigma attached to those affected aircraft? And if not two rv7’s side by side. Both equal but one riddled with cracks from 2022 and one not from 2023. Which one would you buy? Let’s put aside the whole engineering logic for now and also look at human emotion. This is being conveniently overlooked.
 
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And after all that two questions. Do you believe in the public’s eye there will be a stigma attached to those affected aircraft? And if not two rv7’s side by side. Both equal but one riddled with cracks from 2022 and one not from 2023. Which one would you buy? Let’s put aside the whole engineering logic for now and also look at human emotion. This is being conveniently overlooked.
I 100 percent believe there will be a stigma, that is not overlooked in the slightest. That is quite literally what you and I are both agreeing that we are not comfortable with. Once again, public relations, not engineering.
 
Those who are dismissing Vans engineers are not correct, those who are dismissing builders who feel uncomfortable with cracking parts in their aircraft are also not correct. I specifically recall one lecture from my strength of materials professor during undergrad. "You will reach the users comfort limits well before you ever come close to the structural limits." His example was if you build a bike that the engineering says is sound, but the deflection of the frame felt by the user while riding is enough to make the user uncomfortable then that is a problem. You do not need to recall the bike, but making changes for the next iteration to make users feel more comfortable is important. That is the situation we are in at the moment. If you believe Vans engineers ethics are compromised because the analysis was done after the fact you should not be building this aircraft. I don't believe that any builder truly thinks this is the case and is just mad that Vans rescinded the statement that all LCP will be replaced, and questioning engineering is the best argument trying to hold them to that statement. As an engineer I have to do analysis on countless non conformities when machine shops mess up. My boss asks if the part is fine with these errors, so far not a single one of these errors has actually resulted in the part needing to be scrapped. You are well within your right to acknowledge that while the engineering may be sound your threshold of comfort has passed its limit. That is the situation I am in. I do not believe Vans owes me anything related to LCPS. I will gladly pay to have them replaced to cross back into the realm of comfort, but that is my decision. This stopped being an engineering discussion and has become a public relations discussion with premature statements from the company.
Probably one of the best summations of this whole mess to date.
 
I listened to most of the call - had an airport shuttle i needed to catch so missed the very end. I got the impression that the trustee had a great deal of concern over the loans made from the Family Trust and how all that was structured. I spoke briefly with a well respected local bankruptcy attorney the day before the call and he advised it would prolly be worth my time to tune in and listen. He told me even though there is no real creditors committee in Sub 5, the trustee has the discretion to form an ad hoc committee if the various groups wanted to band together. Frankly given the number of non-answers from the representatives on the call for the company I honestly feel that Van's might benefit from that.

After listening to call I am not sure VA will survive this without more of us chipping in to help. I know it sucks and probably no more is more upset than I that they managed to screw up 442 engine deposits at 12-14k a pop. That's $6 million basically gone. Of course the reason all of us are in this situation is that Lycoming got these orders and had no plans to hire or improve their supply chain to fulfill them in a manageable and consistent way.

We the builders are partially responsible for that because like the housing market we all started panic buying and placing deposits on these kits and engines and things figuring it was better to lock in a price and forgo interest and opportunity investment cost to get a spot in line - even tho most of us were not ready for it.

Sigh.

Well make no mistake, like many of the ch 11 airlines most of us airline guys have worked for over our careers - we want Vans to survive. There is NO ONE in the kit builder industry that is even close to being what Vans is. We might carp about management decisions, but we want them to survive. Full stop.

I am gradually moving on from being pissed off..... to how can I help VA survive...because that call made me more pessimistic on their chances.
 
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As they were running out of time. the judge said they would provide an email address to send additional questions. Was I the only one that missed that (or was that possibly only communicated to those still in the phone queue?)
Wasn't the "judge" that said that - judge wasn't in the meeting - Stephen Arnott said it and then didn't give the email address (at least I didn't hear it)
 
After listening to call I am not sure VA will survive this without more of us chipping in to help.

I was wondering the same. Maybe I am reading the "Pre-Status Conference Report Filed By Debtor Van's Aircraft, Inc. (CONWAY, TIMOTHY) (Entered: 01/02/2024)" wrong but doesn't the spreadsheet show that by May they went through there 6mil$ DIP funding and are still loosing 370k$ a week with 2mil cash in the bank. So they would be out of money again in June if nothing changes. Is that a correct interpretation?

Oliver
 
I was wondering the same. Maybe I am reading the "Pre-Status Conference Report Filed By Debtor Van's Aircraft, Inc. (CONWAY, TIMOTHY) (Entered: 01/02/2024)" wrong but doesn't the spreadsheet show that by May they went through there 6mil$ DIP funding and are still loosing 370k$ a week with 2mil cash in the bank. So they would be out of money again in June if nothing changes. Is that a correct interpretation?

Oliver
I think it is a rational interpretation because that is what those numbers indicate. It is unclear when the business is expected to at least start breaking even again. A lot probably depends on how many customers agree to revised contracts as well as how many new customers place orders, and then Van's capacity to deliver those orders. Otherwise, they will need more external funding. The inventory is valued at $25 million so if that can be converted to revenue it will be a big help.
 
Those who are dismissing Vans engineers are not correct, those who are dismissing builders who feel uncomfortable with cracking parts in their aircraft are also not correct. I specifically recall one lecture from my strength of materials professor during undergrad. "You will reach the users comfort limits well before you ever come close to the structural limits." His example was if you build a bike that the engineering says is sound, but the deflection of the frame felt by the user while riding is enough to make the user uncomfortable then that is a problem. You do not need to recall the bike, but making changes for the next iteration to make users feel more comfortable is important. That is the situation we are in at the moment. If you believe Vans engineers ethics are compromised because the analysis was done after the fact you should not be building this aircraft. I don't believe that any builder truly thinks this is the case and is just mad that Vans rescinded the statement that all LCP will be replaced, and questioning engineering is the best argument trying to hold them to that statement. As an engineer I have to do analysis on countless non conformities when machine shops mess up. My boss asks if the part is fine with these errors, so far not a single one of these errors has actually resulted in the part needing to be scrapped. You are well within your right to acknowledge that while the engineering may be sound your threshold of comfort has passed its limit. That is the situation I am in. I do not believe Vans owes me anything related to LCPS. I will gladly pay to have them replaced to cross back into the realm of comfort, but that is my decision. This stopped being an engineering discussion and has become a public relations discussion with premature statements from the company.
Possibly the best summary of the LCP issue I’ve seen. Well said.
 
They say they stopped it because it costs more. How they calculated the cost is the question. Sure, buying from an outside supplier vs their in-house "costs" might look higher, but it all depends on how they depreciated their equipment and lots of other factors. Vans does not have a stellar background on how costs are calculated after all. It will take time to build back credibility. I am willing to wait and hopefully credibility and transparency will return. Time as always will tell.
I remember hearing that even when compared to externally manufactured punched parts, LCP are still more expensive. So punching is cheaper no matter how you look at it.
None of the external punch vendors had capacity which lead vans down the road of laser cutting. It was the only thing they could get quickly while they wait for punch capacity to become available.

If you’ve ever seen a punch press in action and how quickly it moves and punches, it’s pretty obvious it can do a lot more cutting per second than a laser. Especially all the tiny holes can’t be efficient to cut with a laser.

I think that even if the whole LCP drama had not happened, Vans would not be making LCP anymore today.
 
Interesting…it just occurred to me that if you DO sign the new contracts, than Vans emerges from bankruptcy and still can’t make it you can lose your money AGAIN if they declare again (Hope That doesn’t happen)
I don't know about "emerges from chapter 11", but I have been told by an attorney that if I do not file a claim that I will effectively have no rights, particularly if the company does not emerge from chapter 11.
 
But it also sounds like if you agree to new terms, they emerge, and for some reason cannot perform you are then entitled to a full refund of your new contract terms. Seems as though there is more protection for the consumer if you accept the new terms since the court is involved. Unless I misunderstood that in the call.
If they emerge and cannot perform, assuming your money really is in escrow, the court should be able to return your money. However, if your money has been moved out of escrow to start the manufacturing process I would think you are going to be SOL if they don't perform.
 
You did. It's pay up or file a claim (could lose none, some, most or all.)
Engine, prop and avionics customers who don't accept new terms will get 30 days from that rejection notice to file a claim.
You can pay up and file a claim.
 
Those who are dismissing Vans engineers are not correct, those who are dismissing builders who feel uncomfortable with cracking parts in their aircraft are also not correct. I specifically recall one lecture from my strength of materials professor during undergrad. "You will reach the users comfort limits well before you ever come close to the structural limits." His example was if you build a bike that the engineering says is sound, but the deflection of the frame felt by the user while riding is enough to make the user uncomfortable then that is a problem. You do not need to recall the bike, but making changes for the next iteration to make users feel more comfortable is important. That is the situation we are in at the moment. If you believe Vans engineers ethics are compromised because the analysis was done after the fact you should not be building this aircraft. I don't believe that any builder truly thinks this is the case and is just mad that Vans rescinded the statement that all LCP will be replaced, and questioning engineering is the best argument trying to hold them to that statement. As an engineer I have to do analysis on countless non conformities when machine shops mess up. My boss asks if the part is fine with these errors, so far not a single one of these errors has actually resulted in the part needing to be scrapped. You are well within your right to acknowledge that while the engineering may be sound your threshold of comfort has passed its limit. That is the situation I am in. I do not believe Vans owes me anything related to LCPS. I will gladly pay to have them replaced to cross back into the realm of comfort, but that is my decision. This stopped being an engineering discussion and has become a public relations discussion with premature statements from t

And after all that two questions. Do you believe in the public’s eye there will be a stigma attached to those affected aircraft? And if not two rv7’s side by side. Both equal but one riddled with cracks from 2022 and one not from 2023. Which one would you buy? Let’s put aside the whole engineering logic for now and also look at human emotion. This is being conveniently overlooked.
I was initially very concerned about the cracking, even though I have very few LCP (5) in my RV-10 empennage, which are being replaced (hopefully soon). I spoke to an A&P and read all the documents before the C11 filing and became quite comfortable with Van's process and not concerned with respect to the "do not need to be replaced" parts.

That's me. I am sure there will be people who feel differently and yes, I do expect it to have a negative impact on resale values for those kits purchased during the LCP period.
 
Those who are dismissing Vans engineers are not correct, those who are dismissing builders who feel uncomfortable with cracking parts in their aircraft are also not correct. I specifically recall one lecture from my strength of materials professor during undergrad. "You will reach the users comfort limits well before you ever come close to the structural limits." His example was if you build a bike that the engineering says is sound, but the deflection of the frame felt by the user while riding is enough to make the user uncomfortable then that is a problem. You do not need to recall the bike, but making changes for the next iteration to make users feel more comfortable is important. That is the situation we are in at the moment. If you believe Vans engineers ethics are compromised because the analysis was done after the fact you should not be building this aircraft. I don't believe that any builder truly thinks this is the case and is just mad that Vans rescinded the statement that all LCP will be replaced, and questioning engineering is the best argument trying to hold them to that statement. As an engineer I have to do analysis on countless non conformities when machine shops mess up. My boss asks if the part is fine with these errors, so far not a single one of these errors has actually resulted in the part needing to be scrapped. You are well within your right to acknowledge that while the engineering may be sound your threshold of comfort has passed its limit. That is the situation I am in. I do not believe Vans owes me anything related to LCPS. I will gladly pay to have them replaced to cross back into the realm of comfort, but that is my decision. This stopped being an engineering discussion and has become a public relations discussion with premature statements from the company.
Since these parts are acceptable by engineering then why would Vans reject returning them for credit? Seems like a no brainer. Old retail was say $10 which means kit credit is probably $6 new retail is $17.50. You pay a guy $6 for a part and resell it at $17.50. Plus there are lots of folks clamoring to “gladly pay more”.
 
Equally difficult listening to builders swooning and saying how they will gladly pay more.
is it really so tough to understand that different folks have different perspectives based on the differing impacts we all face? Some haven’t started building yet. Some need just one more kit. Some have many thousands of dollars in deposits at risk. Every individual has a certain level of risk tolerance and for many, paying more money to reduce or eliminate their risk is reasonable. They don’t want to see the company fold. Maybe others do want to see that outcome, for instance if they stand to lose very little money and feel that this outcome somehow represents a justice done in their eyes…

Most people want to see Vans succeed and last long after our days of flying are over. Is that so difficult to understand and accept?
 
is it really so tough to understand that different folks have different perspectives based on the differing impacts we all face? Some haven’t started building yet. Some need just one more kit. Some have many thousands of dollars in deposits at risk. Every individual has a certain level of risk tolerance and for many, paying more money to reduce or eliminate their risk is reasonable. They don’t want to see the company fold. Maybe others do want to see that outcome, for instance if they stand to lose very little money and feel that this outcome somehow represents a justice done in their eyes…

Most people want to see Vans succeed and last long after our days of flying are over. Is that so difficult to understand and accept?
I agree, and I think I have said this before, but I am going to say it again. There is a whole industry of people who are hurting now due to this situation. No, I am not speaking about myself or my business, as the maintenance business will always be there. It is all of the "add-on" suppliers, for the lack of a better term. They have made a lot of difference in customizing or just plain enabling us to finish our RV's over the years. Everything from interiors, instrument panels, engine shops, wheels/brakes, control locks, dimple/die sets, etc. I bet I could go on for multiple pages just listing half of the ones I have used over the years, including this very forum. Many of them have been hurting for a while now due to the slow down in building because of the LCP/bankruptcy issues. For those who might have a bone to pick with Van's, I'm not here to say whether you are right or wrong. Everyone's situation is different. But, again, it is a whole lot bigger than just Vans. Let's not lose sight of that. I've been around long enough in the corporate world to know mistakes have a way of working themselves out over time, and usually everone ends up better and stronger for it. If this doesn't happen at Vans it would be very surprising and certainly an outlier. Maybe every individual won't have a "win" in their eyes, and I understand that. Quite candidly, with my lack of patience, if I had been building now I know it would be showing. But in the end, I think the hwole industry is going to get better and stronger.

I'd be willing to bet that other kit manufacturers have been watching and have been having their own internal discussions on how to make sure they don't end up in the same place. I they aren't they are shortsighted.

For those of you who are still building and haven't lost the dream, spend time to think about things you hadn't thought about before. I know I go through that. Most of the time I am really glad for the slowdown as I catch something before it is a problem. I've been working on a panel upgrade for the RV-10 for the last few months, and thought I had it all sorted out. It's taking more time to get the stuff than I initially counted on, but guess what? I find myself making changes or catching things even today, luckily 5 minutes before it was set to be labeled.

Also, technology changes, so with the delay comes new opportunities for instruments, ignition systems, etc. I would encourage you to make good use of the delay to see what things could have been missed by you or could be changed. If you haven't found or thought of something, my bet is you haven't looked or thought hard enough. :)

Vic
 
Yes, anyone can pay up - and file a claim. There is no law against filing a claim. Based on the many points that have been made in the Ch 11 discussion topic, it seems there are at least 8 to 10 valid sub-claims that can be formulated as separate elements within the context of a single unifying claim. Even if paying up and signing a new agreement. This was discussed in the 'Is this an option?" thread, which was locked at the insistence of attorney(s). Wonder why attorney(s) insisted that the thread be locked?
This is not legal advice, just a common sense observation.

In terms of risk. Risk has four main elements. 1) The scientific, quantified level of risk - which is a mathematical combination of the "probability" of some adverse event occurring, and the "consequences" of said adverse event. In a sense, this is the engineering effort by Vans. 2) The perception of the risk. This is different for each individual, and dependent on many factors that are not well understood. 3) The communication of risk. This is the process of communication about some type of risk, and is fraught with challenges, as can be seen displayed in the Ch 11 discussion. 4) Risk management. This is the process of considering the aforementioned elements, and making a decision, with consideration of trade-offs between many factors that recognize this is an imperfect world. If the world were perfect from a risk perspective, there would be zero risk, and zero cost. Unfortunately, risk is a multi-scale concept in both space and time - increasing the complexity of dealing with the types of issues being wrestled with in the whole Ch 11 setting. This point is being offered to expand upon post #61, and build on the point that the discussion has pretty much stopped being about the engineering (ie, the first element of risk), and has transitioned into the other three elements of risk. Unfortunately, while the first element is challenging, the three remaining elements are even more challenging, because they are woven into the fabric of the human dimension, and each person sees a complex situation from a different perspective.

At this point each impacted person is trying to figure out how to manage their own risks (financial, build project, personal stress, timeline, etc), with extremely imperfect information. It is this imperfect information (for example, will a person have to make a decision on their -12 project before they know how the engine situation is going to be resolved by Vans?) that introduces even more uncertainty, and thus risk, into the decision making process, and may be one of many reasons for a claim - noted above. While there will always be a presence of uncertainty and imperfect information, it would seem to be incumbent on the law firm handling the BK to provide the best available information, in a clear and concise manner - in other words, no secrets and good solid basic information that is available at the keyboard. And from the discussion in the Ch 11 topic, it would appear that the law firm, with said responsibility, is doing a less than stellar job. Just look at all the questions being asked, basic fundamental questions, that should already be well defined and answered, and yet one can see the writing on the wall. Folks, it is possible to purchase an RV-7 that has had a stellar build from someone that knew what they were doing. It is also possible to purchase one that is less than well built, with questions about airworthiness. Same kit, two different outcomes. And at the same time, it is possible to hire a legal firm to handle a BK, that doesn't know what they are doing. From what I am seeing, I'm concerned about this situation for Vans. Definitely want Vans to succeed, but am concerned about capabilities of BK firm that was hired.

Just a few common sense observations...
 
... While there will always be a presence of uncertainty and imperfect information, it would seem to be incumbent on the law firm handling the BK to provide the best available information, in a clear and concise manner - in other words, no secrets and good solid basic information that is available at the keyboard. And from the discussion in the Ch 11 topic, it would appear that the law firm, with said responsibility, is doing a less than stellar job. Just look at all the questions being asked, basic fundamental questions, that should already be well defined and answered, and yet one can see the writing on the wall. .... And at the same time, it is possible to hire a legal firm to handle a BK, that doesn't know what they are doing. From what I am seeing, I'm concerned about this situation for Vans. Definitely want Vans to succeed, but am concerned about capabilities of BK firm that was hired.

Just a few common sense observations...
Yes, at the hearing last week, there seemed to be a lot of "we can't", "we won't", "we don't know", and it seemed almost like "we don't care". At least as it related to the customers.
 
Yes, at the hearing last week, there seemed to be a lot of "we can't", "we won't", "we don't know", and it seemed almost like "we don't care". At least as it related to the customers.
My favorite was the "circle back to you" comment, followed by I'm instructing my client to not answer! Its in the hands of the Lawyers , not pilots & Builders.
 
Since these parts are acceptable by engineering then why would Vans reject returning them for credit? Seems like a no brainer. Old retail was say $10 which means kit credit is probably $6 new retail is $17.50. You pay a guy $6 for a part and resell it at $17.50. Plus there are lots of folks clamoring to “gladly pay more”.
Because there parts mark up is 4-5x as shown in the claims filed so if they made the part it would only cost them 3.50$ so why would they pay 6$ and still have to deal with perception issues?

Oliver
 
In the interview with Kitplanes Magazine, Clyde Hamstreet said they are estimating the total number of customers with open kit order to be around 1500. Document 63 in the BMC Portal lists close to 890 open orders from 489 individual serial numbers that have not accepted the new pricing yet. If these numbers are correct, the 70% threshold that Hamstreed allegedly mentioned in the creditors meeting would be almost met.
 
My big take away is that backordered items will be honored (with no upcharge.) Big news for those of us with big ticket items on backorder (seats, wheels, brakes, did I mention seats? :))
Received my last backorder from fuse kit(Feb 2023 order), yesterday. I was definitely upcharged for it and that happened 12/29. But I’m just happy to get parts at this point. They told me if I did not pay then the backordered parts would cancel. Not sure why I got stuck into that category for backorders.
 
Received my last backorder from fuse kit(Feb 2023 order), yesterday. I was definitely upcharged for it and that happened 12/29. But I’m just happy to get parts at this point. They told me if I did not pay then the backordered parts would cancel. Not sure why I got stuck into that category for backorders.
How did the upcharge get applied? Did Vans retroactively increase the fuse kit price, then charge you the difference in order to ship your BO parts? Or, did they upcharge only the BO parts and ask for a smaller increase to cover just those parts?

I have a similar situation. I have approx half of my finish kit ($$ wise, not parts count) BO from Aug23. I've asked for updates on what to expect, but have received no response to any of my emails. I have no idea what to expect at this point. I wish Vans would at least tell me what they PLAN to do, and maybe WHEN.

Jeff
 
How did the upcharge get applied? Did Vans retroactively increase the fuse kit price, then charge you the difference in order to ship your BO parts? Or, did they upcharge only the BO parts and ask for a smaller increase to cover just those parts?

I have a similar situation. I have approx half of my finish kit ($$ wise, not parts count) BO from Aug23. I've asked for updates on what to expect, but have received no response to any of my emails. I have no idea what to expect at this point. I wish Vans would at least tell me what they PLAN to do, and maybe WHEN.

Jeff
I’ve been receiving B/O parts from the time I received my fuse kit(no shipping charge). These last few B/O pieces are not much money, thankfully. But I received an email from vans after the ch11, stating I owe $ or my B/O will be cancelled. I called and asked why I owe. They said I owed for the part, I said I had paid for the kit in full. They then said it was for shipping. Then said they really didn’t know why but I had to pay or get parts cancelled. I paid. The receipt I received with the parts showed it was for the parts. So even B/O parts from paid for kits a year ago may get upcharged.
 
I’ve been receiving B/O parts from the time I received my fuse kit(no shipping charge). These last few B/O pieces are not much money, thankfully. But I received an email from vans after the ch11, stating I owe $ or my B/O will be cancelled. I called and asked why I owe. They said I owed for the part, I said I had paid for the kit in full. They then said it was for shipping. Then said they really didn’t know why but I had to pay or get parts cancelled. I paid. The receipt I received with the parts showed it was for the parts. So even B/O parts from paid for kits a year ago may get upcharged.

Didn’t they say at the creditor meeting under oath that back order parts would be shipped without up charge or am I remembering that incorrectly?

Oliver
 
I was told last week that my back ordered parts (a set of -10 seats), paid for long ago, would be shipped free with no additional charge. We'll see if that holds true but from past back ordered items it appears there is a lot of confusion in the shipping dept. Fingers crossed.
 
I’ve been receiving B/O parts from the time I received my fuse kit(no shipping charge). These last few B/O pieces are not much money, thankfully. But I received an email from vans after the ch11, stating I owe $ or my B/O will be cancelled. I called and asked why I owe. They said I owed for the part, I said I had paid for the kit in full. They then said it was for shipping. Then said they really didn’t know why but I had to pay or get parts cancelled. I paid. The receipt I received with the parts showed it was for the parts. So even B/O parts from paid for kits a year ago may get upcharged.
I get the feeling someone has messed up there.
 
Didn’t they say at the creditor meeting under oath that back order parts would be shipped without up charge or am I remembering that incorrectly?

Oliver
Many things have been said that aren’t exactly the truth. I count this as a win to just get a part from the monsters mouth. Now, If I could just get the in stock part orders from them.
 
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I have heard several instances of this over the last couple of years where people, seemingly randomly, get hit with additional charges for backordered kit parts. I had 2 kits delivered over the last 2 years, both had backordered parts, and I eventually received all of those without any additional charge. Weird.
 
I listened to most of the call - had an airport shuttle i needed to catch so missed the very end. I got the impression that the trustee had a great deal of concern over the loans made from the Family Trust and how all that was structured. I spoke briefly with a well respected local bankruptcy attorney the day before the call and he advised it would prolly be worth my time to tune in and listen. He told me even though there is no real creditors committee in Sub 5, the trustee has the discretion to form an ad hoc committee if the various groups wanted to band together. Frankly given the number of non-answers from the representatives on the call for the company I honestly feel that Van's might benefit from that.

After listening to call I am not sure VA will survive this without more of us chipping in to help. I know it sucks and probably no more is more upset than I that they managed to screw up 442 engine deposits at 12-14k a pop. That's $6 million basically gone. Of course the reason all of us are in this situation is that Lycoming got these orders and had no plans to hire or improve their supply chain to fulfill them in a manageable and consistent way.

We the builders are partially responsible for that because like the housing market we all started panic buying and placing deposits on these kits and engines and things figuring it was better to lock in a price and forgo interest and opportunity investment cost to get a spot in line - even tho most of us were not ready for it.

Sigh.

Well make no mistake, like many of the ch 11 airlines most of us airline guys have worked for over our careers - we want Vans to survive. There is NO ONE in the kit builder industry that is even close to being what Vans is. We might carp about management decisions, but we want them to survive. Full stop.

I am gradually moving on from being pissed off..... to how can I help VA survive...because that call made me more pessimistic on their chances.
I don't understand the "Van's Must Survive," mantra. Claim #184 is from a smaller company in the experimental space many of us know well: Cleaveland Tools. Unlike Van's, Cleaveland's owner has been upfront about his company's troubles (likely fallout from Van's). He even made a video asking for our support. He didn't disappear millions in deposits and paid-for orders, but instead asked us to go to his website and order a t-shirt. What does Van’s do? It stiffs Cleaveland Tools out of thousands of dollars! I'm not sure Van's deserves any consideration it doesn't extend to others itself.
 
I don't understand the "Van's Must Survive," mantra. Claim #184 is from a smaller company in the experimental space many of us know well: Cleaveland Tools. Unlike Van's, Cleaveland's owner has been upfront about his company's troubles (likely fallout from Van's). He even made a video asking for our support. He didn't disappear millions in deposits and paid-for orders, but instead asked us to go to his website and order a t-shirt. What does Van’s do? It stiffs Cleaveland Tools out of thousands of dollars! I'm not sure Van's deserves any consideration it doesn't extend to others itself.
For me “vans must survive“ is for purely selfish reasons, as it is for most of us I imagine.
I have an aircraft that I want to be able to buy parts for. If I damage a wing or cowl, I want to be able to replace them. I want that manufacturing support because it makes my aircraft easier to operate and thus more valuable.
You mention Cleveland tools. If they are to receive any money from Vans, they need them to survive. I would also imagine that if Vans does go under Cleveland and many other small companies would have a tough time keeping going.
In my opinion, spreading the financial pain, and Vans surviving, is in everyones longterm financial interest.
 
I also don't see how Van's going under could benefit anyone involved. The owners, employees, customers, vendors, lawyers, turnaround folks... everyone. To the people that keep acting like they want them to fail, why? It seems to me Van's is worth quite a bit more alive than dead, and your project certainly is. This is like a run on a bank. If enough people keep going with their builds it will work out, too many people try to pull out it wont. To the people that want to be done with them the best option for everyone and yourself might just be to keep going and sell the kit after receiving it or the plane after finishing it.
 
Not gunna lie, how the 3rd party items are handled will really cement my final perception of this company. If the company does indeed fail, I am certain someone will purchase it, maybe rebrand and continue the product. What that will mean for the product, well I guess that depends on who were to buy it.
Anyway, I’d hope associated companies like Lycoming, garmin would reach a deal to make the situation equitable for all parties, especially the ones (the customers)who really helped the CEO’s get that 4th house in Martha’s Vineyard (hyperbole). It looks like we are all taking a hair cut here so Lycoming, garmin may/should consider taking a little financial hit to proceed profitably into the future and most likely recoup all of that money plus some. Because, if vans does fail, all of these companies are going to lose a mother ton of money and profit margins per year.
 
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I don't understand the "Van's Must Survive," mantra. Claim #184 is from a smaller company in the experimental space many of us know well: Cleaveland Tools. Unlike Van's, Cleaveland's owner has been upfront about his company's troubles (likely fallout from Van's). He even made a video asking for our support. He didn't disappear millions in deposits and paid-for orders, but instead asked us to go to his website and order a t-shirt. What does Van’s do? It stiffs Cleaveland Tools out of thousands of dollars! I'm not sure Van's deserves any consideration it doesn't extend to others itself.
It's ridiculous to accuse Van's of consciously "stiffing" anyone. Yes, it's unforgivable that they fell asleep at the wheel and ended up owing more to creditors than they were making. I do not get why Cleaveland would deserve favor over any of their other bills. If Van, as the majority owner, wanted to stiff anyone, he would have closed up shop, filed chapter 7, let the courts liquidate the company assets while he fully retired in comfort. Instead, he pumped $6 million of his own money back into the company (and essentially to his suppliers,) and filed Chapter 11, which may well lead to his suppliers eventually getting all of what's owed back. At Van's age, I truly believe his actions are because he wants to do the right thing.

Customers may feel "stiffed," but the reality is we weren't paying enough for Van's to continue as a viable business. I think most of us would have still bought a Van's kit knowing it would cost this much. It's certainly not right that we couldn't know that up front and I'm in no way forgiving Van's financial ineptitude.
 
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