Sun Country seeks court order to obtain information to implement plan

By Lisa Kerner

Charlotte, N.C., Oct. 12 - Sun Country Airlines asked the court to order Sun Minnesota Foreign Holdings, LLC, Sun Minnesota Domestic Holdings, LLC and Sun Credit, LLC to provide the necessary ownership information to the debtor by the end of business on Oct. 15 so that the company can implement its reorganization plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Minnesota.

All of the conditions required for implementation of the plan have been, or can immediately be, satisfied except one - obtaining the approval of the U.S. Dept. of Transportation of the new ownership structure for the debtor provided under the plan, the filing said.

The Sun entities must provide information to determine how much of the new equity of the debtor will be owned by the foreign Sun entity or entities.

A hearing is set for Oct. 13.

Sun Country's second modified plan of reorganization was confirmed on Sept. 10, and Sun requested information from the Sun entities on Sept. 11.

The Sun entities' motions for a stay of the confirmation order pending appeal were denied.

Sun Country said it is vital that the plan become effective as soon as possible because it is incurring $250,000 to $300,000 per month in fees and costs in its Chapter 11 case and encountering operational difficulties by remaining in Chapter 11.

Also, since the debtor is a public air carrier whose plan was covered in the media, there is an expectation that the company will emerge promptly.

In addition, the smaller creditors expect to be paid and are entitled to their 40% distribution as soon as the plan is effective.

Sun Country is a subsidiary of Petters Aviation, LLC owner MN Airlines Holding, Inc. The company filed for Chapter 11 bankruptcy on Oct. 6, 2008. Its Chapter 11 case number is 08-35197.

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