Administrators have warned roughly 4,800 creditors of Rex - Regional Express (ZL, Wagga Wagga) that they are unlikely to be repaid, despite the airline's sale to US-based aviation holding company Air T. The deal, expected to close by end-2025, prioritises maintaining regional air services over settling the estimated AUD500 million Australian dollars (USD325 million) in outstanding debts.

EY, the administrator since Rex's collapse in July 2024, confirmed the sale but stated that “no return to shareholders is anticipated,” with a similar outcome expected for the airline's extensive list of creditors. EY said proceeds from the sale would primarily go to secured lenders and the continuation of operations, leaving little prospect of a dividend for unsecured creditors.

Among the unsecured creditors are several regional airports in Western Australia, including the City of Albany, owed about AUD456,000 (USD296,000), and the Shire of Esperance, owed AUD440,587 (USD286,000), according to ABC News. Numerous local councils elsewhere in Australia are also listed as creditors due to unpaid airport service fees and charges.

The Australian government is the airline's largest single creditor after providing substantial financial support to keep Rex operational during its 15-month administration. This included an AUD80 million (USD52 million) loan and the acquisition of AUD50 million (USD32.4 million) in debt from a private lender.

Transport minister Catherine King confirmed that the government had entered into an agreement with Air T to restructure Rex's financing but declined to elaborate, citing the ongoing administration process. She told ABC Radio Mildura that Air T would operate as an Australian entity subject to local law and employment regulations.

Air T declined to discuss details of the government loan repayments, saying only that “the Commonwealth negotiated hard for the financial and public policy interests of all Australians.”

The acquisition includes Rex's fleet of fifty-seven Saab 340B turboprops and its pilot training facility at Ballarat. Air T, which operates aircraft maintenance and parts trading businesses, including a Saab 340B components facility in Kingman, said it will retain current Rex management and staff and plans to restore the full fleet to service.

Rex entered administration after expanding from regional services into domestic trunk routes, incurring significant debt as it introduced leased B737-800 fleet. The administration has since been extended three times, most recently until December 5, 2025.