Sun Country Airlines, facing a cash shortage, filed for Chapter 11 bankruptcy protection today.
Petters Aviation, which owns all of Sun Country's voting shares, also filed.
"We were forced to take this action as a result of recent events at Petters Group Worldwide," Sun Country CEO Stan Gadek said in a prepared statement.
The Mendota Heights-based carrier had planned to obtain an operating loan from Petters Group late this year. Instead, the low-fare airline is facing a cash shortage because Tom Petters has been arrested and charged in a federal fraud case.
Sun Country and its executives have not been under investigation by federal agents.
The bankruptcy filing gives the carrier some relief from its creditors as Sun Country restructures in bankruptcy.
Sun Country will continue to fly its regular schedule during the bankruptcy.
Sun Country previously was in bankruptcy and exited in 2002 under new ownership.