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National government buys 10% of regional carrier’s debt to maintain rural services
January 24th 2025
The Australian government will buy A$50 million (US$31.36 million) of debt from Regional Express Holdings’ (Rex) largest creditor, PAGAC Regulus Holdings, making it the airline’s principal secured creditor, transport minister, Catherine King, and finance minister, Katy Gallagher, have announced. Read More » They described the transaction as “an important step to prevent an adverse outcome for regional communities, such as liquidation and ensure continued connectivity of Australia’s regional and remote communities”. Rex’s debt is estimated at A$500 million owed to 4,800 creditors, Reuters reports. The carrier entered voluntary administration in late July last year, cutting hundreds of jobs and grounding the 737s that were flying its loss-making eastern seaboard capital city network. It has maintained its regional flight schedules.
