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Rex will not release FY2023–24 financial results or hold an AGM as scheduled, its administrator has confirmed.
In an ASX release, EY Australia said that as part of the voluntary administration process, the airline will defer its reporting and AGM obligations until the administration ends or until two years have passed from the beginning of the administrators’ appointment, whichever comes first.
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“The administrators of the Rex Group give notice that they intend to rely on the relief set out in ASIC Corporations (Externally-Administered Bodies) Instrument 2015/251 (Instrument) which provides for the deferral of financial reporting obligations for a minimum period of six months and up to a maximum period of 24 months from the date of appointment of the administrators,” the administrators said in an ASX release.
“In accordance with the instrument, all financial reporting obligations of the Rex Group under Part 2M.3 of the Corporations Act 2001 (Cth) (Act) are deferred until: (a) if the external administration ends prior to 30 January 2025 (inclusive), six months from the date of the appointment of the administrators; or (b) if the external administration extends beyond 30 January 2025, the earlier of: (i) 24 months from the date of the appointment of the administrators; and (ii) the day the external administration of the Rex Group ends.”
Additionally, the administrators noted that under the instrument, Rex is not currently required to comply with the requirement to hold an AGM once per calendar year within five months of the end of the financial year.
“This relief applies until the last day of the deferral period. A company relying on this exemption must hold an AGM within two months after the end of the deferral period and lay before that AGM all outstanding financial reports deferred under section 8 of the instrument,” they wrote.
“Accordingly, the AGM of the Rex Group is deferred until at least two months from the date that the financial reporting relief ceases.”
EY Australia last week won approval in the Federal Court to extend its appointment as administrator until 25 November as it continues a sale process for Rex. Administrator Sam Freeman said shortly after his appointment that EY wanted to present sale options to creditors within 25 working days.
“It’s very much our intention not to have a prolonged administration period,” he said.
Rex had posted a $3.2 million loss for the first half of the 2023–24 financial year, down from a $16.5 million loss in the first half of 2023.
