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US Firm Air T to Buy Rex, Setting Up Exit From Administration

Administrators say most creditors will likely recover nothing under the conditional transaction.

Overview

  • Administrators at EY confirmed a sale and implementation deed with US aviation services company Air T to sell and recapitalise Rex’s business operations.
  • The deal remains subject to regulatory clearances and creditor approval, with further details to be provided ahead of upcoming creditor meetings.
  • Air T told industry outlet ch-aviation it expects the transaction to close by the end of 2025, following multiple extensions of Rex’s administration period.
  • The federal government has supported continuity of services with up to $80 million in loans and a $50 million debt purchase, and it has agreed with Air T on restructuring Rex’s financing arrangements tied to the acquisition.
  • EY warned that about 4,800 creditors owed roughly $500 million are likely to receive no return and that shareholders should expect none, as Air T brings Saab 340 parts and MRO capability to sustain Rex’s 57‑aircraft fleet and acquire its Ballarat pilot training school.