Petters Aviation, Sun Country Airlines file for Chapter 11 bankruptcy

By Jennifer Lanning Drey

Portland, Ore., Oct. 6 - Petters Aviation, LLC and its subsidiaries, including Sun Country Airlines, filed for Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Minnesota, according to a company news release.

"We were forced to take this action as a result of recent events at Petters Group Worldwide," Stan Gadek, chief executive officer of Sun Country, said in the release.

Sun Country will continue to operate and fly its regular flight schedule.

Largest unsecured creditors

According to a court document, Petters' largest unsecured creditors include:

• Sun Minnesota Domestic Holdings LLC & Sun Minnesota Foreign Holdings, Minneapolis with a $12.5 million claim related to a note repurchase of shares on MN Airline Holdings, Inc.

• Acorn Capital Group, LLC, Greenwich, Conn., with a $10 million claim related to airbus PDPs;

• Chase Equipment Leasing, Columbus, Ohio, with a $6.06 million claim related to a loan;

• Petters Co., Inc., Minnetonka, Minn., with a $4 million revolving demand;

• Petters Aircraft Leasing, LLC, Minnetonka, Minn., with a $2 million advance claim;

• Petters Capital, LLC, Minnetonka, Minn., with a $1.5 million unsecured note claim;

• Minnwest Bank Metro - Champlin, Champlin, Minn., with a $1 million claim related to a line of credit;

• MN Airlines, LLC, Mendota Heights, Minn., with a $385,244 claim related to MSP facility rent and utilities;

• Priester Aviation, LLC, Wheeling, Ill., with a $290,156 claim related to management fees; and

• SilverStone Group, Omaha, Neb., with a $149,055 insurance claim.

Petters Aviation, LLC is a wholly owned unit of Thomas Petters, Inc. and owns MN Airline Holding, Inc., the parent company of Sun Country Airlines.

Sun Country Airlines is a St. Paul, Minn.-based airline. Its Chapter 11 case number is 08-45136.

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