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Air T Agrees to Buy Rex, Paving Way Out of Administration

Creditor and regulatory sign-offs remain before a planned year-end completion.

Overview

  • Administrators signed a Sale and Implementation Deed with US-based Air T to recapitalise Rex and end its voluntary administration, pending required approvals.
  • No return to shareholders is anticipated, and unsecured creditors owed about A$500 million are likely to receive little or nothing, according to EY.
  • The federal government reached an agreement with Air T to restructure Rex’s financing to keep regional services operating, with the fate of roughly A$130 million in public support unresolved.
  • Air T highlights access to Saab 340 parts and maintenance capacity, including spares from its Kingman facility, as central to sustaining Rex’s 57‑aircraft turboprop fleet.
  • A creditors’ meeting and court approval are still to come, with Air T targeting completion by the end of 2025 as unions and local councils seek assurances on routes, jobs and repayments.