The administrators of Australia’s Regional Express (Rex) are seeking an extension to the carrier’s voluntary administration period, as they confirm several “interested parties” in the sale process.
Ernst & Young (EY), which is the appointed administrator for Rex, said it is working to narrow the number of bidders, to continue “progressing negotiations with a view to achieving a successful transaction”.
EY did not disclose the number of offers it has received, except to say that they are “well-funded and see real value in the business and its future”.
The administrators were originally given until end-June to close the sale of Rex, which entered into administration in July 2024 amid mounting financial challenges after an expansion into jet operations.
EY has since applied to the Australian Federal Court to seek an extension until December, citing the need to “finalise negotiations with this narrowed bidding field”.
It said it will be facilitating “in-depth bidder engagement with stakeholders of the business”, and work closely with the shortlisted bidders to finalise and document the transaction.
Should the courts allow an extension, the Australian government has promised to continue its financial assistance to the carrier, and extend its ticket guarantee for Rex passengers.
Transport minister Catherine King pledged additional government funding of up to A$30 million ($19.3 million) to “keep regional routes in the air” until the conclusion of the sale process.
This is on top of an A$80 million loan from Canberra to keep its routes in operation until end-June. King notes that the amount has yet to be fully expended.
Canberra had previously floated its intention to acquire Rex should the sale process yield no suitable buyers. This followed an unsuccessful first sale process in 2024.
