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Sun Country Files For Chapter 11

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By TED JACKOVICS

tjackovics@tampatrib.com

Published: October 7, 2008

TAMPA - Sun Country Airlines, which announced plans to resume service at Tampa International Airport in November with seasonal nonstop flights serving Minneapolis, filed for Chapter 11 bankruptcy protection Monday.

The privately held airline said it will continue its normal schedule as it reorganizes.

"We were forced to take this action as a result of recent events at Petters Group Worldwide," Chairman and Chief Executive Stan Gadek said in a statement regarding the airline's parent company.

Sun Country planned to obtain an operating loan from Petters Group late this year, the Minneapolis Star Tribune reported Monday. Instead, the low-fare airline is facing a cash shortage because Petters Group founder Tom Petters has been arrested and charged in a federal fraud case in a scheme to defraud investors of millions of dollars, The Associated Press reported.

The Minnesota-based airline said customers with reservations and tickets "have nothing to worry about" because Sun Country's credit card bank retains funds until passengers fly and would issue refunds if flights were canceled.

Sun Country last week filed a federally required notice providing 60-day notice of a major layoff or shutdown.

Sun Country has flown from both Tampa International and St. Petersburg-Clearwater International airports.

Reporter Ted Jackovics can be reached at (813) 259-7817.

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