Monday, September 29, 2008

Don't banks do that? 

Two stories today kind of come together here:
As its parent company faces legal troubles, Sun Country Airlines announced it is deferring 50 percent of its employees� wages through the end of the year.

Sun Country CEO Stan Gadek sent a letter to employees Monday saying, �we must now become financially independent of our parent company.�

Sun Country is a unit of Petters Worldwide Group. Last week, authorities raided Petters� headquarters and several homes.

...Sun Country is in its slowest period of the year and Gadek says under normal circumstances, the company would request a short-term loan from Petters Worldwide. Now, he says, that option isn�t available.
In a normal financial market, Plan B would be to go to a bank for short-term liquidity. Not now.

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