Canberra lays out terms for support of Rex Airlines rescue

November 5, 2025roymorgansocial Leave a comment

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

Rex Airlines finds US buyer after entering into voluntary administration

October 22, 2025roymorgansocial Leave a comment

Original article by Miriah Davis
abc.net.au – Page: Online : 22-Oct-25

The administrators of Rex Airlines have confirmed that they have secured a sale and implementation deed with US-based air services company Air T. The deal follows a long-running sale process for Rex, which went into voluntary administration in June 2024. Transport Minister Catherine King in turn has confirmed that the federal government has entered into an agreement with Air T in relation to restructuring Rex’s financing arrangements. She says this will allow Rex to continue to provide aviation services for regional communities. Air T is a holding company for 16 entities that provide a range of aviation services. The deal will be put to Rex’s creditors in coming weeks.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED, AIR T INCORPORATED, AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT, COMMUNICATIONS AND THE ARTS

Have business failures finally hit the peak?

July 23, 2025roymorgansocial Leave a comment

Original article by Giuseppe Tauriello
The Australian – Page: 19 : 23-Jul-25

Official data shows that 14,716 businesses were declared insolvent in 2024-25, which is 33 per cent higher than the previous financial year. However, CreditorWatch’s latest Business Risk Index report has concluded that the monthly rate of insolvencies may have peaked; it notes that just 1,305 businesses collapsed in June, which is 10 per cent lower than the high reached in November 2024. CreditorWatch also notes that business-to-business payment defaults fell by 6.5 per cent in June. CEO Patrick Coghlan remains cautious, noting that the global economic environment is still "highly uncertain"; he adds that the Australian Taxation Office has become more aggressive about recovering tax debts.

CORPORATES
CREDITOR WATCH PTY LTD, AUSTRALIAN TAXATION OFFICE

FY25 the worst year on record for insolvencies

July 2, 2025roymorgansocial Leave a comment

Original article by Joseph Carbone
The Australian – Page: 13 & 16 : 2-Jul-25

Data from the Australian Securities & Investments Commission shows that a record 14,105 businesses were declared insolvent nationwide during 2024-25, which is 26.8 per cent higher than the previous financial year. The figures, which cover the fiscal year up to to 15 June, also show that the construction sector was hardest-hit, recording 3,417 insolvencies. CreditorWatch’s chief economist Ivan Colhoun says the upturn in insolvencies is at least partly attributable to the Australian Taxation Office’s tougher stance on recovering debts after a period of leniency during the pandemic.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CREDITOR WATCH PTY LTD

Insolvency wave builds despite hopes for rate relief

April 29, 2025roymorgansocial Leave a comment

Original article by Matt Bell
The Australian – Page: 17 : 29-Apr-25

Data from the Australian Securities & Investments Commission shows that 3,393 businesses were declared insolvent in the March quarter; this is 27.6 per cent higher than the same period in 2024. Meanwhile, some 11,162 businesses have appointed insolvency specialists so far in the financial year, with the figures current as at 6 April. This represents an increase of 44.1 per cent year-on-year, and Jarvis Archer from Business Reset says insolvencies are on track to exceed 15,000 in 2024-25. Construction, hospitality and retailing are amongst the sectors that have recorded the biggest growth in insolvencies.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BUSINESS RESET PTY LTD

Women’s boot brand Wittner collapses

April 17, 2025roymorgansocial Leave a comment

Original article by Sarah Perillo
The Australian – Page: 17 : 17-Apr-25

Women’s footwear brand Wittner has become the latest casualty of challenging market conditions in Australia’s retail sector. Sal Algeri and David Orr from Deloitte have been appointed as the administrators of Wittner, which has a network of more than 20 stand-alone stores and about 25 concession stores within David Jones and Myer outlets. Wittner was founded in 1912, and the administrators have emphasised that it will continue to trade as they seek a deal to sell or recapitalise the business.

CORPORATES
WITTNER SHOES, DELOITTE TOUCHE TOHMATSU LIMITED

Small business in recession as public service thrives

February 18, 2025roymorgansocial Leave a comment

Original article by Millie Muroi
Brisbane Times – Page: Online : 18-Feb-25

Deputy Opposition leader Sussan Ley says the number of small businesses that employ people in Australia has fallen from around 953,000 to 922,000 since Labor won the federal election in May 2022. Ley adds that the nation appears to experiencing a small business recession, while the federal government has hired about one permanent public servant for every small business that is collapsing. The Coalition has flagged public service cutbacks if it wins the upcoming election, with Labor having hired an additional 36,000 public servants during its first term in office.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Albanese government says it will acquire collapsed Rex Airlines if no other buyers emerge

February 12, 2025roymorgansocial Leave a comment

Original article by Natassia Chrysanthos, Mike Foley
The Sydney Morning Herald – Page: Online : 12-Feb-25

The federal government has indicated that it will provide support to any potential buyers of the failed Rex Airlines to ensure that the carrier’s regional services continue. The government has emphasised that it is not participating in the sale process, but would be open to acquiring Rex if no private-sector buyer emerges. The government became Rex’s biggest creditor in January after agreeing to buy the $50m debt of the airline’s key investor. The government also provided Rex with an $80m loan facility to enable it to continue servicing regional routes until mid-2025. Rex has total debt of about $500m.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED – ASX REX

Rivers rus dry with no buyers

January 24, 2025roymorgansocial Leave a comment

Original article by Eli Greenblat
The Australian – Page: 15 : 24-Jan-25

The receivers and managers of Mosaic Brands have advised that they have been unable to find a buyer for its Rivers footwear and clothing brand. David Hardy from receiver KPMG says all remaining 136 stores operating under the Rivers brand will be close by mid-April, with the loss of about 650 jobs. Rivers and several other brands were acquired in 2018 by Noni B, which subsequently became Mosaic Brands. The company collaped in late 2024 with debts of nearly $250m, and several of its retail brands were immediately axed. The brand that eventually became Rivers was established in 1863.

CORPORATES
RIVERS (AUSTRALIA) PTY LTD, MOSAIC BRANDS LIMITED – ASX MOZ, KPMG AUSTRALIA PTY LTD

Thousands shut up shop as company collapses hit record

January 21, 2025roymorgansocial Leave a comment

Original article by Matt Bell
The Australian – Page: 13 & 14 : 21-Jan-25

Data from the Australian Securities & Investments Commission shows that 7,483 companies were declared insolvent in the six months to December 2024. This is 47.1 per cent higher than the same period in 2023. Jarvis Archer from Business Reset says insolvencies are 84 per cent higher than prior to the COVID-19 pandemic; he adds that the number of companies going into administration could potentially top 16,000 in the year to June 2025. The previous annual record of 11,053 insolvencies was set in 2023-24. The ASIC data shows that insolvency appointments in the construction sector rose by 29.6 per cent year-on-year in the first half of 2024-25, while insolvencies in the hospitality sector have increased by 70.2 per cent.