Anchorage Capital Bids to Acquire Australia’s Rex Airline

The bidding deadline for Australia’s insolvent Regional Express (Rex) has passed, with Anchorage Capital Advisors among the interested parties, according to the Australian Financial Review. The distressed debt investor submitted its offer as administrators work to secure the airline’s future ahead of a June 30 Federal Court deadline.

Rex entered voluntary administration in July 2024 after an unsuccessful attempt to compete with Qantas and Virgin Australia on domestic trunk routes, deviating from its traditionally profitable regional operations. Although originally expected to resolve within three months, the administration remains ongoing nearly a year later. To obtain an extension, administrators must demonstrate sufficient progress toward finalizing a deal.

Anchorage Capital has previous aviation experience, having been an underbidder during Indigo Partners’ acquisition of Frontier Airlines. Another potential bidder is Western Australia’s HMC Group, which operates Nexus Airlines. While Nexus Managing Director Michael McConachy has expressed interest in expanding his Western Australia-focused network, national expansion is not a priority.

An alternative restructuring plan involves a debt-for-equity swap, where Rex’s creditors would take equity stakes and return the airline to the Australian Stock Exchange. The Australian government would hold around 10% ownership after repaying AUD150 million (USD98 million) owed to a major lender.

Although Rex’s Boeing 737-800 mainline services ceased with administration, government support has kept regional propeller operations running. The government has indicated it would nationalize Rex if necessary to maintain essential regional air services.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com