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Tom Petters

On October 31, 2006, the airline announced that its acquisition by Petters Group Worldwide and Whitebox Advisors, previously announced in July, had been completed.

On March 5, 2008, Sun Country announced that Stan Gadek, former CFO of AirTran Airways, would become the airline's new CEO/president, replacing Jay Salmen who was acting as the interim CEO/president.

On April 1, 2008, Sun Country announced that it was placing 45 of its 156 pilots on furlough and was going to fly a lighter-than-normal summer schedule. The company blamed the decision on rising fuel costs.

On April 16, 2008, the carrier, which is owned by Mendota Heights-based Petters Group Worldwide, cut 28 full-time and 97 part-time jobs, according to a report in the Minneapolis Star Tribune. The full-time jobs included major executives, while the part-time jobs consisted of mostly station personnel.
On August 13, 2008, the airline indicated it had hoped to get up to $50 million in loans or other financial help from the state of Minnesota and the airports commission.
In September 2008 the carrier announced reductions or eliminations of flights to San Francisco and Los Angeles. It also began charging $12 for the first checked bag, following most major U.S. carriers.
At the end of September 2008, Gadek called for a 50% pay-deferral to all remaining employees. Also on the 28th, Tom Petters resigned after an FBI probe discovered financial fraud on a massive scale.

Tom Petters after arrest 

Following this, the airline filed for Chapter 11 bankruptcy protection on October 6, 2008, in order to separate itself from the other Petters companies that were being taken over by a court appointee.