Sun Country plan confirmation, claim rulings appealed by creditors

By Caroline Salls

Pittsburgh, Sept. 17 - Sun Country Airlines' plan of reorganization confirmation order has been appealed by unsecured creditors Sun Minnesota Foreign Holdings, LLC, Sun Minnesota Domestic Holdings, LLC and Sun Credit, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Minnesota.

The Sun entities also appealed a court order allowing Petters Worldwide Group, LLC and other Petters entities to temporarily file claims for the purposes of voting on Sun Country's plan.

As previously reported, the Sun entities asked the court to declare amounts owed by Sun Country Airlines to Petters subordinate to all amounts owed to all other unsecured creditors, including Sun Minnesota Foreign Holdings, Sun Minnesota Domestic Holdings and Sun Credit.

The creditors said Sun Country has not paid them amounts owed under a November 2007 promissory note.

In March 2009, the Sun entities filed a $27.3 million proof of claim in the Sun Country bankruptcy case for the principal and interest owed under the unsecured promissory note.

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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