Sun Country files for bankruptcy, going down with Petters sinking ship
Sun Country Airlines told the Metropolitan Airports Commission today that it filed for Chapter 11 bankruptcy. The low-cost airline based in Minnesota ran into some financial trouble after their parent company, Petters Group Worldwide, became entrenched in a federal fraud investigation of more than $1 billion.
Petters Aviation, which owns all of Sun Country's voting shares, also filed, according to the Star Tribune.
On Friday, we reported that the carrier warned employees of major layoffs or a potential shutdown as soon as Dec. 1.
According to the Pioneer Press:
Sun Country has not been implicated in the scheme, but Petters had loaned the airline money at lean times of the travel season, and that cash isn't available now.
The Star Tribune also has a statement from the airline:
"We were forced to take this action as a result of recent events at Petters Group Worldwide," Sun Country CEO Stan Gadek said in a prepared statement.
Sun Country will continue to fly its regular schedule during the bankruptcy.
Tom Petters: If you ruin our week of basking in the Jamaican sun this winter, you will get some really nasty letters in prison.