Sun Country DIP financing approved; company to restore wages

By Caroline Salls

Pittsburgh, Dec. 4 - Sun Country Airlines received court approval of debtor-in-possession financing from Elite Landings, LLC that will be used to meet payment obligations, according to a company news release.

The terms of the financing were filed under seal.

In addition, Sun Country said it will restore employee wages to pre-bankruptcy levels, effective immediately, and an additional wage increase will occur on Jan. 1 to reflect the expiration of voluntary pay cuts taken in early 2008.

"With access to capital, the support of our aircraft lessors and lower fuel prices, we now have the ability to continue operating through our peak winter season and beyond," chairman and chief executive officer Stan Gadek said in the release.

Petters Aviation, LLC is a wholly owned unit of Thomas Petters, Inc. and owns MN Airline Holding, Inc., the parent company of Sun Country Airlines. The companies filed for Chapter 11 bankruptcy on Oct. 6 in the U.S. Bankruptcy Court for the District of Minnesota. Its Chapter 11 case number is 08-35197.

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