US Air T to buy Rex Airlines
Make us a preferred source
Make us a preferred source on Google
The news: Regional Express Airlines, or Rex, will be acquired by US air services company Air T, after Rex went into voluntary administration last July .
The context: Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, confirmed on Tuesday that the companies have entered into a sale and implementation deed.
A statement shared by King said that The Australian Government also entered into an agreement with Air T in relation to restructuring Rex’s financing arrangements in connection with the acquisition, allowing Rex to keep flying and maintain critical aviation links for regional communities.
A statement from Rex administrators EY thanked the Australian Government for its support in assisting to facilitate the proposed transaction. EY said that the deed would result in the sale and recapitalisation of the business operations conducted by the group and that “no return to shareholders was anticipated.”
EY said it is preparing its report to creditors that "will detail the estimated return to creditors and will provide further details with respect to the proposed transaction."
In June this year, Rex agreed with the Commonwealth government to receive an additional $30 million in financing as the federal court extends the regional airline operator's voluntary administration period to keep regional routes flying until December.
The company entered administration after the airline’s fleet was grounded after it was unable to pay bills.
The sources: Catherine King statement, EY statement
