Rex administrators call for more time in buyer search
Embattled airline Rex's search for a saviour could drag on for months longer as administrators appeal to a court for more time.
More than three weeks after entering voluntary administration, the debt-laden regional carrier is still looking for a buyer after reportedly fielding interest from a range of parties.
Rex's fleet of Boeing 737s operating between major metropolitan centres was grounded after management of the airline was handed to administrators EY Australia, but regional flights remain in the sky.
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The buyer search for regional airline Rex could drag on for months. Nine
EY will go to the Federal Court today to formally ask for their convening period to be extended out to no later than November 25.
It is a blow for the more than 600 workers who have been made redundant to date and Transport Workers Union national secretary Michael Kaine pleaded with the administrators to provide them with some certainty.
"Rex workers have already been in limbo for weeks waiting for the outcome on their owed entitlements - we need to see those workers receive their entitlements as quickly as possible," he told AAP.
"It has still not been explained to redundant workers of now-defunct Regional Airways Limited why the business, despite being shut down and not a part of any sale discussions, has not yet been liquidated."
The federal government has stepped in to guarantee bookings on regional flights, but no details of any further bailout package have been revealed.
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The federal government stepped in to guarantee bookings on regional flights after the collapse of Rex. Supplied
In a statement to the airline's roughly 4800 creditors, Rex administrators said they would have a more accurate timeline on the future of the business within the coming fortnight.
"It is our current view that the greatest return to creditors is likely to be derived from a sale or recapitalisation of the business as a going concern … more time is required to achieve such an outcome," the administrators said.
The two weeks would also let them understand if any parts of the business should stay in administration for an extended period, they added.
The airline is about $500 million in debt and has launched an asset sale as well as the buyer search.
A second creditors' meeting, yet to be scheduled, will include a vote on whether to return the Rex companies to the existing board, place them under a deed of company arrangement or liquidate.
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