Company warns of possible shut-down

Last week, Minneapolis-based Sun Country Airlines sought to reassure customers that it would keep operating without any problems even though its largest shareholder, Tom Petters, had his home and office raided by federal officials as part of a fraud investigation. But now the airline is said to be looking for a cash infusion to get it through the end of the year – and failure to do so could result in severe operational disruptions or even a shutdown, according to press reports. Petters has resigned as CEO of Petters Group Worldwide as the fraud investigation into his business dealings continues. That probe does not involve Sun Country, but Minneapolis newspapers reported that the airline has sent a letter to employees warning that the company faces a “serious financial crisis” unless it can find additional financing to get it through the next few months. According to the newspaper, the letter to employees said that if the airline can’t obtain extra financing or relief from creditors “in the near future, there is a distinct possibility that the airline will be shut down and/or you will be furloughed.” However, it went on to say that company executives are “confident” they will find a solution to the problem.