Petters fallout: Sun Country and Polaroid screwed
Tom Petters sits in jail, awaiting charges in a $3 billion investment fraud Ponzi scheme as all of the companies that relied on Petters Group Worldwide struggle to stay above water. We hope his heart hurts every time we remind him of the destruction.
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Sun Country told a judge the airline has $108.2 million of debt held mostly by unsecured creditors.
Claims that aren't backed by collateral total $98.9 million, including customer ticket deposits of $32.3 million and Sun Credit LLC's claim of $27.2 million, the carrier said in papers filed Nov. 21 in U.S. Bankruptcy Court in St. Paul. Sun Country, which leases its nine planes, has assets of $55.2 million, according to the 280-page outline of its financial affairs.
The carrier placed a $3 million value on its trademarks, including "Comfortably Low Fares" and "Smile Awards." Sun Country filed a Chapter 11 petition on Oct. 6 after it couldn't get a $7 million short-term loan from its owner, Petters Group Worldwide LLC.
The owner's assets were frozen after its founder, Tom Petters, was arrested and accused of masterminding a fraud of more than $2 billion.
Polaroid is also part of Petters Group and the company's future is still up in the air, according to the Star Tribune . Polaroid hasn't filed bankruptcy... yet.
Polaroid, which operates out of the Petters Group Worldwide headquarters in Minnetonka, has hired New York investment bank Houlihan Lokey to explore options.
Angry investors are circling, meanwhile, anxious to recover whatever money they can find amid the Petters debris. Polaroid is an obvious target. It's unclear though, whether the aggrieved investors can squeeze anything from the former Fortune 500 company, which one industry analyst referred to as a "beaten vagabond."
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