Original article by Chris Zappone
The Sydney Morning Herald – Page: Online : 5-Nov-25

The federal government will provide Rex Airlines with a new $60m commercial loan, lifting taxpayers’ total financial support for the carrier to more than $200m since it went into administration. US-based Air T will in turn contribute $50m to the recapitalisation of Rex as part of its deal to acquire the failed airline. The government will also restructure about $90m of Rex’s debt on terms that will allow repayments to be made over time via a profit-sharing arrangement. In addition, the government will retain its security over Rex’s fleet of Saab 340s aircraft and its flight simulator. Meanwhile, administrator EY has confirmed that Rex’s creditors will not recover any of their money.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED, AIR T INCORPORATED, ERNST AND YOUNG