Rex offered more federal funds to support court bid
Rex's administrators will make a legal attempt to extend their control of the embattled airline, as the federal government promises conditional extra money worth millions to support the bid.
Transport Minister Catherine King on Tuesday announced the intention of the voluntary administrations to apply to the Federal Court for the convening period to be expanded to December 2025.
The Albanese government already bought $50 million of debt from Rex's largest creditor and loaned it up to $80 million to keep regional routes running.
If the extension is granted, Labor will also provide up to $30 million in extra finance to the administrators to keep regional routes operational until December, should it be needed.
But the money comes with strings attached for ongoing service to regional and remote communities, value for money to taxpayers, and good governance.
Ms King said the sale process was "progressing positively" with the administrators having narrowed the bidding field.
"This would allow the administrators additional time to secure a market-led solution," she said.
"The decision to grant an extension is a matter for the Federal Court."
The government will continue to help regional communities by extending the ticket guarantee on regional routes, should the extension be approved.
"The existing loan of up to $80 million provided to the administrators - which is yet to be fully expended - would remain available to ensure the airline can continue to operate," Ms King said.
"The government continues to work closely with the administrators during their sale process for Rex."
The federal government is not bidding for the airline.
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