Vann’s Moves From Chapter 11 to Chapter 7 to Help Facilitate Sale
KGVO News has received a copy of a speech given to Vann's Incorporated employees on Friday, stating the reasons why the Trustee has moved from Chapter 11 to Chapter 7 bankruptcy protection.
The speech states that 'negotiations for the potential acquisition of Vann's are proceeding'. The speech goes on to state 'the trustee has taken an action to convert to Chapter 7 in order to facilitate the transaction as quickly and as efficiently as possible. While this conversion can carry negative connotations, in this case it is a procedural mechanism to bring resolution quickly. Employees will notice no change with the conversion from chapter 11, and business will continue under normal operations, including process, procedure, and pay, etc...'
The reason for the conversion is that the sale could take one to two months to complete under chapter 11, and under chapter 7 the process can move forward much more quickly.
The speech states that 'there is still work to do in order to get to a finalized agreement.'
Vann's operates 5 stores throughout the state, and has until October 31st to find a buyer.