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Judge permits immediate loan to Sun Country
Posted: Thursday, March 14, 2002
MINNEAPOLIS (AP) -- A federal bankruptcy judge Wednesday allowed an investor group to provide an immediate $1.5 million infusion to Sun Country Airlines.
MN Airlines, an investor group led by Burnsville attorney Robert Daly, will provide the money in the form of a debtor-in-possession loan to finance the airline's short-term operation.
On Tuesday, Judge Nancy Dreher allowed Sun Country to convert an involuntary Chapter 7 bankruptcy proceeding to voluntary Chapter 11, clearing the way for MN Airlines to buy the airline for $2.9 million.
Sun Country stopped flying in early December and laid off about 900 employees. Last month, the airline rehired 130 people and restarted scheduled service to 12 cities.