Sun Country Airlines to be owned by unsecured creditors under plan

By Caroline Salls

Pittsburgh, April 6 - Sun Country Airlines filed its plan of reorganization and disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, a portion of the unsecured claims of creditors in a convenience class will be paid in cash, and the remaining holders of larger unsecured claims will become the owners of the airline.

Specific creditor treatment will include:

• Holders of administrative claims, priority claims and priority tax claims will be paid in full;

• Holders of City of Los Angeles, Los Angeles World Airports claims, JFK International Airport, LLC claims and Port Authority of NY & NJ - JFK claims will be paid in full in cash;

• Holders of Swissport USA, Inc. claims will be paid in cash by making a draw on the letter of credit securing the claim;

• Holders of other secured claims will receive treatment that will render their claims unimpaired;

• Holders of convenience claims of $50,000 or less will recover 20% in cash;

• Holders of unsecured claims will receive 100 shares of new common stock for each $1,000 of allowed claims; and

• Holders of Sun Country equity interests will receive no distribution.

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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