Petters Company Inc. files backruptcy
Petters Company Inc., the Tom Petters' financing operation at the center of a massive fraud case, has filed for bankruptcy with liabilities of between $500 million and $1 billion, according to the Star Tribune.
The Chapter 11 petition was filed late Saturday night in U.S. Bankruptcy Court in Minnesota. Chapter 11 of the bankruptcy code provides a debtor protection from creditors while the business attempts to reorganize.
Petters Group Worldwide, the parent company based in Minnetonka, also entered bankruptcy, with liabilities listed as $50,000 or less.
Petters remains in jail on fraud charges in a case that burst into the public arena on Sept. 24 when Petters' Minnetonka headquarters and home were raided by federal agents.
And the crumbling continues.
Get the This Week's Top Stories Newsletter
Every week we collect the latest news, music and arts stories — along with film and food reviews and the best things to do this week — so that you’ll never miss City Pages' biggest stories.
- Metro Transit reviewing alleged beating of autistic teen Marcus Abrams
Sat., Sep. 19, 7:00pm
Sun., Sep. 20, 12:00pm
Sat., Sep. 26, 2:30pm
Sun., Sep. 27, 12:00pm
- Minnesota Reps. Tim Kelly, Tara Mack ticketed for "making out" in a car
- Lake Calhoun gets guerrilla-style name change