The Australian federal government has stepped in to rescue regional airline Rex Airlines by assuming $50 million of its debt from its largest creditor. This move aims to prevent the airline's liquidation, which would severely impact regional and remote communities reliant on Rex's services. The government's acquisition of the debt will make it the principal secured creditor and allow it to participate in the Committee of Inspection. Rex Airlines has been in voluntary administration since June 2023 and faces an extended deadline of June 30, 2024, to secure its commercial future. The government's intervention also includes guaranteeing ticket sales until June 30 and providing access to the Fair Entitlements Guarantee for former employees.
The federal government continues to throw regional carrier Rex Airlines a lifeline, after taking on its $50 million debt from its largest creditor PAGAC Regulus Holdings Limited.
Transport Minister Catherine King and Finance Minister Katy Gallagher today announced the government would acquire some of Rex's debt to prevent liquidation, which they said would harm regional and remote communities that rely on the carrier.The federal government has acquired $50 million of Rex Airlines' debt from its largest creditor.
"Whilst the accelerated initial sale process undertaken by the administrators in mid-2024 did not find a suitable buyer for the airlines' regional operations, the government continues to work closely with the administrators through the extended convening period. EY has a little over five months to secure Rex's commercial future after the Federal Court late last year granted an extension of the voluntary administration to June 30.Driver crashes into tree, leaves passenger fighting for life in the carEY said the loan, and the extension, would be used to invest in a business improvement program including increasing its fleet.
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