[tldavis]

Until they re-emerge from bankruptcy, should a company be treated as a reliable business partner? There's always the chance that they close their doors tomorrow, or decide not to honor a set price again.

It might ease tensions to set up an escrow account system, so that as they start to pay creditors, they don't stall out on delivery of kits, engines, or other large ticket items. Just as when buying a house, I'd think about employing an escrow service. An alternative would be cash on delivery.

They have a kit deposit of mine, and as I understand that money is still considered available to be applied to a newly repriced kit from Vans, but may not be available for me to buy someone else's surplus kit. Had it been in escrow and they decided they couldn't deliver at the original price, my money would come back whole, minus perhaps a small escrow agent cost. That would have been better for me then. Fool me once ....

Just a thought. That said, I do trust Vans Aircraft and wish them well. Their planes are flying far into the future and I hope for more greatness. It's a great bunch of people and ideas.

 

[moespeeds]

Both parties must agree to escrow.

I personally would not agree to escrow on an order where I'm incurring manufacturing and or labor costs right from the order date. Too easy for the customer to back out and leave me holding the bag on incurred costs.

 

[2theskyy]

Both parties must agree to escrow.

I personally would not agree to escrow on an order where I'm incurring manufacturing and or labor costs right from the order date. Too easy for the customer to back out and leave me holding the bag on incurred costs.

That’s the point of an escrow; terms and agreements. Under those terms then the escrow is released to the company.

 

[jimbom]

Their Chapter 11 plan includes segregating deposits. They are obviously concerned about the optics of all this and want new builders to feel their deposits are safe and not shy away from buying kits.

 

[rv6ejguy]

Both parties must agree to escrow.

I personally would not agree to escrow on an order where I'm incurring manufacturing and or labor costs right from the order date. Too easy for the customer to back out and leave me holding the bag on incurred costs.

Van's has a huge order backlog. There would be little risk if the occasional builder canceled- the next person in line simply moves up. IMO escrow is the best way forward for new builders to regain confidence in the company.

Using deposit money to fund day to day operations is a risky business model IMO. We've seen the result here and in several other aviation companies that went under doing this when something else goes sideways.

 

[rkensrud]

This is effectively what Van's asked the judge to approve. They want to publish that incoming funds for kits go into a hold and not put into the general fund for spending on whatever. They didn't have to do that, but they did it to restore confidence in customers. The lawyers and the judge commented that it was clear Van's values it's customers with voluntary actions like this.