Key facts
- A New South Wales court found Regional Express Holdings (Rex) breached its market disclosure obligations.
- The breach relates to a February 2023 profit forecast where Rex expressed optimism for positive operating profits.
- The court ruled that Rex did not have reasonable grounds to expect positive operating profits from April 14, 2023.
- Rex entered voluntary administration and was acquired by U.S. aviation services provider Air T in 2025.
- Former Rex executive chair Lim Kim Hai admitted to breaches of director duties and involvement in the company's disclosure contravention.
A New South Wales court has found that the now-collapsed Australian airline Regional Express Holdings (Rex) breached its market disclosure obligations concerning a February 2023 profit forecast, according to the Australian Securities and Investments Commission (ASIC).
The court determined that Rex did not have reasonable grounds to expect positive operating profits for the full fiscal year 2023 from April 14, 2023, onwards, despite stating optimism in its February announcement.
Rex entered voluntary administration and was subsequently bought by U.S. aviation services provider Air T in 2025. The ASIC also noted that this decision follows weeks after former Rex executive chair Lim Kim Hai admitted to allegations of breaching director duties and involvement in the company's continuous disclosure contravention.
ASIC Chair Sarah Court emphasized the critical nature of continuous disclosure for listed entities, stating it underpins Australia's corporate governance framework and ensures investors receive accurate and timely information impacting their decisions.