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Airline Files For Chap.11 After Hedge Fund Founders Arrest

Date: Tuesday, October 7, 2008
Author: Alex Akesson, HedgeCo.net

Holiday airline Sun Country filed for bankruptcy yesterday, just 3 days after the arrest of Thomas Petters, founder of hedge fund Petters Group Worldwide, the firm that owns Sun Country among other investments.

Petters was charged with mail and wire fraud, money laundering and obstructing justice.

"We were forced to take this action as a result of recent events at Petters Group Worldwide," said Sun Country Chairman and CEO Stan Gadek. The airline said that it would continue to fly its regular schedule.

A federal judge in Minneapolis order Petters to be held without bail after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country. A hearing is scheduled for Tuesday.

Petters has stated that he plans to fight to be released from custody and maintains his innocence.

Alex Akesson

Editor for HedgeCo.Net
Email: alex@hedgeco.net