Australia's Federal Court has agreed to extend the convening period for the Rex - Regional Express (ZL, Wagga Wagga) voluntary administration to June 30, 2025. Justice Brigitte Markovic issued the order in Sydney on November 20.
In addition, the court ordered that the administrators, Ernst & Young, can enter into and perform finance and security agreements with the Australian government on behalf of the insolvent Rex entities. The court also limited the personal liability of the administrators regarding the finance and security agreements.
Ernst & Young recently reached a deal with the government to keep Rex’s regional routes running during any extension of the voluntary administration process. The government agreed to provide financing of up to AUD80 million Australian dollars (USD52 million) to assist with this.
Four Rex entities filed for voluntary administration after accruing substantial losses by venturing into scheduled B737-800 operations on Australian domestic sectors. The jet operations have ended, but its Saab 340B regional flights continue. The administrators are attempting to sell the long-running business. To date, they have sold aeromedical airline Pel-Air Aviation (PFY, Sydney Kingsford Smith), a sister entity not in administration, to Toll Holdings Limited for about AUD47.1 million (USD30.7 million).
Transport minister Catherine King welcomed the court's decision. "This extension gives the administrators of Rex the best possible opportunity to implement an improvement strategy for the regional aviation business," she said. "Our support for the administrators’ application to the Federal Court for the extension recognises the important role that Rex plays in regional communities across Australia."
