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P.M. Update: Sun Country files for bankruptcy; Citigroup sues Wells Fargo

Sun Country Airlines has filed for bankruptcy. The Mendota Heights-based airline said this afternoon that it’s filed for protection under Chapter 11. However, it also said it will continue operating and flying its regular flight schedule. CEO Stan Gadek said the bankruptcy filing is a result of recent events at its parent company, Petters Group Worldwide. Sun Country was planning to seek a loan from Petters Group, but last week owner Tom Petters was arrested and charged with fraud.

Meanwhile, Citigroup is suing Wells Fargo and Wachovia for $60 billion. The lawsuit was filed today in New York State Supreme Court, Bloomberg reports. A Wells Fargo spokeswoman declined to comment to the news service, saying the bank hadn’t yet seen the complaint. It accuses Wachovia of breach of contract and Wells Fargo of illegally interfering with Citigroup’s deal to acquire Wachovia’s mortgage business. The federal government was continuing efforts to broker a resolution, which might involved splitting up Wachovia and selling portions of the bank to each of the bidders. Wells Fargo is the second-largest private employer in Minnesota.

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