Negotiations involving the sale of Sun Country Airlines were described Tuesday as "intense and continuing" but not finished.
Attorney Daryle Uphoff, representing the trustee for the Tom Petters bankruptcy estate, told U.S. Bankruptcy Judge Gregory Kishel that there have been multiple parties interested in a deal but that talks are focused on one single party at the moment.
"These have been intense negotiations and those continue," Uphoff said. "Whether they lead to a final agreement, we're hopeful."
Neither the potential buyer nor purchase offer has been disclosed.
One potential stumbling block in the deal is the skyrocketing cost of oil and the corresponding rise in the price of jet fuel.
"Events in the Middle East have not created a favorable environment for Sun Country," Uphoff said.
Uphoff made his appearance before Kishel on a request to keep under seal the minimum bid that trustee Doug Kelley will accept for the Twin Cities-based airline.
Kishel granted that request noting that public disclosure of the minimum acceptable purchase price would encourage "low ball" bids.
"The interest of the estate is maximizing realization," said Kishel.
Sun County was part of the Tom Petters corporate organization that was forced into bankruptcy when the Petters empire collapsed under the weight of a $3.65 billion Ponzi scheme. The airline emerged from bankruptcy last month.
Its executives have previously said the airline is worth at least $20 million.
David Phelps • 612-673-7269
