Petters Company Inc. files backruptcy

Petters Company Inc., the Tom Petters' financing operation at the center of a massive fraud case, has filed for bankruptcy with liabilities of between $500 million and $1 billion, according to the Star Tribune.

The Chapter 11 petition was filed late Saturday night in U.S. Bankruptcy Court in Minnesota. Chapter 11 of the bankruptcy code provides a debtor protection from creditors while the business attempts to reorganize.

Petters Group Worldwide, the parent company based in Minnetonka, also entered bankruptcy, with liabilities listed as $50,000 or less.

Petters remains in jail on fraud charges in a case that burst into the public arena on Sept. 24 when Petters' Minnetonka headquarters and home were raided by federal agents.

And the crumbling continues.