Australia’s Rex Airlines confirmed its new owner which will take it out of voluntary administration but creditors are still unsure if they will see a cent back.
The Administrator confirmed the deal with US based aviation company T Air.
Air T expects to conclude the transaction by the end of the financial year.
“Air T will work to ensure Rex will continue to operate on a sustainable basis, thereby providing critical services to regional Australians,” it said.
Rex had been in voluntary administration since last year.
“We have high confidence in the quality of Rex Regional’s management team and employees,” Air T CEO Nick Swenson said
Many of the creditors are local authority owned airports across regional Australia.
“There are 5,000 creditors, there is $500 million worth of debt, and we are a minnow in an ocean of unsecured creditors,” creditor Albany City Council said.
“I don’t think there’s any chance would get a return at all.”
The deal was welcomed by the Australian Airports Association and the federal government.
The sale will enable Rex to keep serving small outback communities.
