Judge approves bankruptcy reorganization plan for Sun Country Airlines

Judge approves Sun Country bankruptcy plan

MINNEAPOLIS — Sun Country Airlines said a bankruptcy judge approved its reorganization plan on Friday, putting it another step closer to emerging from Chapter 11 protection.

Sun Country said creditors have also approved the plan.

The reorganization plan gives a majority stake to a court-appointed receiver managing the assets of Sun Country’s former owner, Tom Petters. Fraud allegations at Petters’ other businesses led to a 50-year prison sentence.

Other stakes are held by the hedge fund Whitebox Advisors and Sun Country CEO Stan Gadek.

The airline, based in St. Paul, Minn., flies nine aircraft, mostly from Minnesota to vacation destinations.

The bankruptcy covers MN Airlines LLC, which does business as Sun Country. It said it will emerge from bankruptcy debt-free.