Sun Country files for Chapter 11 Bankruptcy October 7, 2008

Sun Country filed for chapter 11 bankruptcy over the weekend. All of the companies voting shares were held by Tom Petters, who's office was recently stormed by federal agents on account of fraud. Petter's other businesses have been taken over by a court appointee while they sort out the case. By filing for bankruptcy Sun Country wanted to prevent being seized by the court. Also, Sun Country was expecting to recieve a loan from Petters to cover costs during the months of October and November. The company has already cut their workers wages by 50%, promising to reimbuse them in 2009. The CEO Stan Gadek said in an interview, "We're not in bankruptcy because of our business model being broken, we are in bankruptcy because of the recent events at Petters Group World-Wide." The company said flights and service will continue as usual during the up-coming holiday season and that there will be no major increase in ticket or baggage fees. They are confident they will be able to make up their losses during their peak season when many Minnesotans flee the cold harsh winter.