The Government is stepping in to prevent the rural airline from potential liquidation.
The Australian Government has committed its support to the continued operation of Rex Airlines, announcing it will acquire $50 million of debt from the carrier’s largest creditor, PAGAC Regulus Holdings.
The acquisition means the Government will become Rex’s principal secured creditor, and will continue to work with closely with the airline’s administrators Ernst & Young through the extended convening period, after the initial sale process did not find a suitable buyer.
The Government will also seek to become a voting member on Rex’s Committee of Inspection, it announced.
More details in today’s issue of Travel Daily.