Global law firm Norton Rose Fulbright has advised the Australian government on the restructuring and refinancing of Australia's largest regional airline, Rex Airlines.
The airline entered voluntary administration in July 2024. The government had identified Rex as an important airline for regional and remote communities.
The firm advised the Australian government on all aspects of measures to support Rex during its administration and to facilitate a potential financial restructuring.
Advice included interrelated rescue finance transactions designed to enable the administrators to continue to trade Rex's regional business, a business improvement programme during the administration, and conduct a sale process of Rex's regional business.
Those transactions included the Australian government's A$110 million ($72.7 million) finance facilities, a standstill agreement with Rex's then principal secured creditor (to facilitate an orderly sale of assets non-core to Rex’s regional business), and the Australian government’s acquisition of A$50 million ($33 million) of Rex’s debt owed to that secured creditor.
Norton Rose Fulbright also advised the Australian government on the administrators’ sale process which resulted in the Rex companies’ successful restructuring.
This involved the acquisition of the shares in Rex Holdings by NASDAQ-listed AirT Inc.; a restructuring of the Australian government’s rescue finance facilities; a restructuring of Rex's unsecured liabilities via a Deed of Company Arrangement; and exit finance facilities provided by the Australian government and Air T.
These arrangements include commitments aimed at enabling Rex to preserve essential regional aviation connectivity, facilitating the return of more aircraft to service, and increasing the frequency of profitable flights across the Rex network.
“Rex has played an important role in meeting the travel needs of regional and remote Australians, and we are delighted to have supported the Australian government’s efforts to ensure that these valued aviation services can continue,” said Norton Rose Fulbright restructuring partners Noel McCoy and Scott Atkins in a joint statement.
The Norton Rose Fulbright team was led by McCoy and Atkins and also included partner Vittorio Casamento and special counsel Adele Gray (banking & finance), partner Jasmine Sprange (corporate), partner Richard Morrison, and special counsel Veronica Seeto (Commonwealth government).
Other lawyers supporting on the transaction included special counsel Sebastian Jensen; senior associates Sera Erikozu, Igor Kungurov, and Natalia Starostenko; and associates Alex Brigden, Ella Crowley-Burrows, and William Batt.