Rex Airlines administrators apply for extension to find suitable buyer for troubled business

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Rex News

Rex Airlines,Regional Express,Aviation

Hundreds of former Rex employees could face an even longer wait to be paid their entitlements after administrators applied for an extension to find a buyer for the airline.

Administrators for Rex are seeking an extension to find a buyer for the troubled airline after it collapsed in July.

Documents filed in the Federal Court on Wednesday stated that administrators were requesting the convening period be extended until November 25 to give them more time to finalise the sales process for the airline, which is $500 million in debt. Administrators said the extension was necessary to ensure that a suitable buyer for the business could be found.

Even if the Federal Court approves the extension request, administrators are confident that the second creditors' meeting will be held "as soon as possible" after the sales process has been completed, which is likely to be finalised before the end of September. "This application does not affect companies that are not in administration, including Pel-Air and the Australian Airline Pilot Academy which continue to trade normally.

 

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