The administrators of Rex - Regional Express (ZL, Wagga Wagga) have used proceeds from the sale of a B737 simulator and a Textron twin turboprop King Air 350C to repay the remaining debt owed to investment firm PAGAC Regulus Holding Pte. Ltd, according to a March 28, 2025, Australian Stock Exchange filing.
The sale of the B737-700/B737-800 simulator together with the property that housed it near Sydney Kingsford Smith Airport raised USD3.83 million and the sale of the King Air raised USD7.3 million. The administrators, Adam Nikitins, Samuel Freeman, and Justin Walsh of Ernst & Young, said monies remaining after settling the PAGAC Regulus debt would be used to repay other debts accrued by insolvent Regional Express Holdings Limited and associated entities.
Regional Express Holdings Limited, trading as Rex - Regional Express, filed for voluntary administration in July 2024, owing around AUD500 million Australian dollars (USD312 million). The administrators have since sold off various parts of the business, including a training school at Wagga Wagga Airport, Pel-Air Aviation, and a stake in National Jet Express, in addition to the simulator and aircraft. However, the core business operating a fleet of Saab 340Bs and Saab 340B(Plus) to regional and remote towns remains unsold.
PAGAC Regulus Holdings is a subsidiary of Singapore-based private equity firm PAG Asia Capital. In 2020, PAGAC issued Regional Express Holdings AUD150 million (USD94 million) in convertible notes to bankroll its ill-fated B737 venture, a primary cause of last year's insolvency. Rex drew down AUD130 million (USD81 million) against the PAGAC notes.
After filing for administration, PAG Asia Capital provided the administrators with an additional loan to keep the Saab 340 flights going. In January 2025, the Australian government acquired AUD50 million (USD31 million) of the PAG/PAGAC debt.
The Australian government, alive to the importance of regional and remote flights and the electoral implications of them ending, says it will nationalise Rex - Regional Express if no buyer is found. In addition to acquiring a portion of the PAGAC debt, the government has also provided the administrators with an AUD80 million (USD50 million) commercial loan to maintain flights and guarantee tickets during the administration period.
In the 2025/2026 Federal Budget, handed down on March 26, the government reiterated its backup plan to nationalise the airline. “In the event there is no sale, the government will undertake work on contingency options in consultation with relevant states, including preparations if necessary for potential Australian government acquisition of Rex,” the budget papers read.
