U.S. District Court Judge Robert Kressel has approved Sun Country Airlines’ plan of reorganization, paving the way for the company to exit bankruptcy.
The plan provides for cash payments to certain creditors, as well as a distribution of equity in the reorganized company to other creditors, according to a Sun Country press release.
The plan’s confirmation highlights the successful turnaround of Sun Country Airlines, which will emerge as a profitable and debt-free company. said Stan Gadek, the carrier’s president and CEO, in a statement. “Going forward, Sun Country is well positioned for growth and success as The Hometown Airline.”
Mendota Heights-based MN Airlines, which does business as Sun Country Airlines, filed for bankruptcy in October 2008, days after the arrest of Tom Petters on federal charges of fraud and obstruction of justice. Petters was CEO of Minnetonka-based Petters Group Worldwide, which owned Sun Country, and also filed for bankruptcy.
A jury found Petters guilty of orchestrating a $3.65 billion Ponzi scheme in November 2009 and he was sentenced to 50 years in federal prison in April.
sblack@bizjournals.com | (612) 288-2103