Overview
- Canberra will restructure about A$90 million of Rex’s debt through a profit‑sharing arrangement and extend a new A$60 million commercial loan, alongside roughly A$50 million in fresh capital from Air T.
- The government will retain security over Rex’s aircraft and simulator to protect public funds and to keep the Saab fleet serving regional and remote communities.
- Air T must lift the number of operational aircraft from roughly 30 to 44 over time, bolster regional connectivity, engage with state governments, brief the Commonwealth, and appoint independent Australian directors.
- EY’s administrators attributed Rex’s collapse primarily to a global pilot shortage and persistent supply‑chain problems for engine maintenance components, compounded by a failed move into capital‑city jet routes.
- The deed of company arrangement provides no return to ordinary unsecured creditors, and if the takeover fails the Commonwealth is expected to recover only 35–63 cents on the dollar with priority employee creditors around 10 percent, pending creditor, court and regulatory approvals.