June 30 (Reuters) – Australia’s securities regulator said on Tuesday that a New South Wales court found that formerly listed airline Regional Express Holdings (Rex) breached its disclosure obligations tied to a February 2023 profit forecast.
Here are a few details:
• Rex had said in its February 2023 announcement that it was “optimistic the Group will have positive operating profits for the full FY23, barring any further external shocks.”
• The Supreme Court of New South Wales found that the company did not have reasonable grounds to expect that the Rex Group would have those positive operating profits from 14 April 2023 onward, the Australian Securities and Investments Commission (ASIC) said.
• Rex did not immediately respond to a Reuters request for comments.
• The collapsed airline was bought out by U.S. aviation services provider Air T in 2025, a year after it entered voluntary administration.
• The Australian corporate regulator added that the decision comes weeks after former Rex executive chair Lim Kim Hai admitted to allegations of director duties breaches and involvement in the company’s continuous disclosure contravention.
• ASIC Chair Sarah Court said, “Continuous disclosure is a core obligation for listed entities and underpins Australia’s corporate governance framework. It is critical that investors have access to accurate and timely information that would impact their investment decisions.”
(Reporting by Sneha Kumar in Bengaluru; Editing by Janane Venkatraman)
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