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Aviation News Item: 12159
11th Sep 2010
Sun Country Airlines Announces 'Confirmation Of Plan Of Reorganization'
Source: aero-news.net
 Move Will Allow The Airline To Exit Bankruptcy
Sun Country Airlines announced Friday the confirmation of its plan of reorganization which allows the company to exit bankruptcy. The plan was confirmed by Judge Robert J. Kressel during a court hearing this morning in Minneapolis and was overwhelmingly approved by the creditors eligible to vote. The plan provides for cash payments to certain creditors, as well as a distribution of equity in the reorganized company to other creditors.
"Today marks an important step in the company's emergence from bankruptcy," said Stan Gadek, Sun Country Airlines president and CEO. "I wish to thank both our employees and our customers who continued to support the company during this process. The plan's confirmation highlights the successful turnaround of Sun Country Airlines which will emerge as a profitable and debt-free company." Gadek went on to say, "Going forward, Sun Country is well positioned for growth and success as The Hometown Airline."
As ANN reported last year, fortunes turned decidedly against Sun Country in 2008, when parent company Petters Aviation, LLC filed for Chapter 11 bankruptcy protection on October 6. The capitulation came about two weeks after the offices of Petters Group Worldwide were raided by federal agents. Company founder Tom Petters resigned as chairman of Sun Country's board of directors soon afterward, under clouds of accusation and a strong whiff of corporate malfeasance.
Despite the turmoil, Gadek asserted his airline would continue flying... though employees were asked to accept two rounds of pay cuts through the end of the year, as the decline of Petters tanked the airline's chances of securing outside loans to cover regular payroll. At the time, Gadek promised those cuts would be short-lived... and that apparently was the case. Sun Country announced in April of 2009 a record first quarter net income of $8.1 million. This compares to a net loss of $8.3 million in the first quarter of 2008.
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