iscover
Rex has been found to have breached continuous disclosure obligations, according to the Supreme Court of NSW.
Regarding a profit forecast in February 2023, Rex reportedly told the market that the 2023 financial year would present a “positive operating profit”, despite ongoing operational losses.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
The Supreme Court found that although the regional carrier told the ASX it expected to make a profit, it “did not have a reasonable basis for that claim”.
Rex later announced it expected a $35 million operating loss in June 2023, and the company entered voluntary administration in July 2024.
In failing to disclose this information to the market in a timely manner, the court deemed that Rex misled the market and contravened disclosure obligations.
“Continuous disclosure is a core obligation for listed entities and underpins Australia’s corporate governance framework,” said Australian Securities and Investments Commission (ASIC) chair Sarah Court.
“It is critical that investors have access to accurate and timely information that would impact their investment decisions.”
This ruling comes after Lim Kim Hai, Rex’s former executive chair, acknowledged his role in breaching his directors’ duties and accepted a financial penalty and disqualification before the courts.
Three non-executive directors were investigated by ASIC; however, the Supreme Court found that they did not contravene their obligations.
Legal proceedings began in December 2024, with ASIC alleging that the regional airline “engaged in misleading and deceptive conduct and contraventions of continuous disclosure obligations”.
After entering voluntary administration and racking up $500 million in debt while trying to compete with domestic capital-city carriers Qantas and Virgin, regional services continued to operate under administrators.
The Australian government later provided financial support to help the airline maintain regional flights.
In 2025, Rex was sold to a US company, Air T, for more than $150 million.
Want to see more stories from trusted news sources?
Make Australian Aviation a preferred news source on Google.
Click here to add Australian Aviation as a preferred news source.
