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Sun Country Seeking Loan From Another Petters Co.

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Nov 28, 2008 11:13 am US/Central

Sun Country Seeking Loan From Another Petters Co.

MINNEAPOLIS (AP) ― Local discount carrier Sun Country Airlines is seeking permission from a bankruptcy judge to get a loan from another Petters Group Worldwide company that's also in bankruptcy.

The airline tells the judge in a recent filing that it has a deal for a line of credit from Elite Landings, which was in the business of selling corporate jets made by Airbus.

Cancellations of some orders have prompted Airbus to return $9.5 million to Elite since Elite's bankruptcy filing -- money that now could help Sun Country keep flying.

With the motion, Sun Country hopes to confirm that when it receives the loan, the money won't be tied up in some way by its other creditors.

In the past, Sun Country would regularly get millions of dollars in short-term loans from Petters Group Worldwide to get it through the slow months until winter and spring.

That won't happen this year, because Petters Group became the target of a massive federal investigation that uncovered an alleged $3.45 billion fraud scheme.

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Sun Country Airlines started operating in 1982, with 33 employees.


(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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