Regional Express Airlines has found a buyer after operating under voluntary administration for more than a year.<\/p>\n
In a statement on Tuesday evening, administrators confirmed they had entered into a sale and implementation deed with Air T, a US-based air services company.<\/p>\n
The airline, also known as Rex, was placed into voluntary administration in July 2024, after acquiring $50 million in debt from its largest creditor, PAG.<\/p>\n
The federal government agreed to underwrite continued operations of the passenger service until this December while administrators searched for a buyer.<\/p>\n
Based in Minneapolis, Air T is a group of 16 companies offering air cargo, commercial aircraft, engines and parts, as well as aviation ground support.<\/p>\n
The process will result in the sale and recapitalisation of business operations, with an update on proceedings to be provided ahead of a second meeting with creditors.<\/p>\n
“The Administrators would like to thank the Australian Government for their support to date in assisting to facilitate the proposed transaction,” a statement read.<\/p>\n
A ‘positive step’: Transport minister<\/p>\n
A spokesperson for co-administrator Ernst and Young told ABC News the sale proposal would be put to creditors in the next few weeks.<\/p>\n
Federal Minister for Infrastructure, Transport and Regional Development, Catherine King said the government welcomed the announcement as a “positive step” towards bringing Rex out of administration.\u00a0<\/p>\n
“The Australian Government has also entered into an agreement with Air T in relation to restructuring Rex\u2019s financing arrangements in connection with the acquisition,” Ms King said in a statement.\u00a0<\/p>\n
“This will allow Rex to keep flying and maintain critical aviation links for regional communities.<\/p>\n
“As the sale process led by the Administrators is still underway, the Australian Government will not comment further at this time.”<\/p>\n
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