Sun Country, which had received $25 million in short-term financing from Petters Group Worldwide since the fourth quarter of 2007, was counting on receiving another $7 million from the company to pay for its operations through the rest of this year, the airline said in a bankruptcy court filing Oct. 7.
Sun Country also said it is suffering from liquidity difficulties because of “exploitation†by Petters Group or related parties of Petters Aviation’s cash and credit line. Petters Aviation is a wholly owned unit of Thomas Petters Inc. and owns MN Airline Holdings, Sun Country’s parent company.
Shortly before filing for bankruptcy, Sun Country’s management notified employees that it planned to defer 50% of their salaries for the remainder of the year, to be paid back with interest when the airline is in a position to do so.
