Ex-Rex boss admits hiding news of airline’s financial woes
Updated ,first published
The former chairman of Rex Airlines capitulated in just a few days to a major lawsuit, admitting he had failed to disclose the airline’s true financial position in 2023 before its eventual collapse a year later.
Rex’s former executive chairman, Lim Kim Hai, admitted “all of the breaches alleged against him”, the Australian Securities and Investments Commission said, on the third day of a lawsuit brought by the corporate regulator against the company and four former executives.
Lim was aware that Rex was facing an operating loss in February 2023 but instead signed a statement from the company to the ASX saying it was “optimistic that the group will achieve positive operating profits” for the financial year.
Public companies have a duty to inform the market about significant developments affecting their financial condition.
The airline later recorded a large loss during the year and was placed into administration with debts of $500 million. It continues to fly its planes under its new ownership.
“Former Rex chairman Lim Kim Hai has admitted all of the breaches alleged against him in the Supreme Court of New South Wales,” ASIC said in a statement.
Lim’s admissions do not include other non-executive directors, former federal transport minister John Sharp, Lincoln Pan and Siddharth Khotkar, who have pleaded guilty to allegations against them.
Because of his confessions, Lim will now ask the court to “issue financial penalties and disqualification orders, as well as other decisions”.
On Monday, ASIC lawyers argued Rex Airlines executives knew the failed airline had published an “unreasonable and unsupportable” profit forecast in February 2023, then reversed course and posted a $35 million loss weeks before the end of the financial year in June 2023.
In July 2024, Rex went into administration with debts of $500 million. It was delisted from the ASX in September 2025 after the Albanian government stepped in to provide a loan of up to $80 million to enable the airline to continue flying routes to regional Australia, where it provides an essential service to communities.
The government also assumed $50 million in debt from Rex’s largest creditor, PAGAC Regulus Holdings Ltd.
Following a search for a buyer, US-based Air T, a regional airline with experience operating turboprop aircraft, was selected as the Rex’s buyer. Under the terms of the agreement, the government became the primary secured creditor of the airline’s fleet.
The Business Briefing newsletter delivers big stories, exclusive news and expert insights. Sign up to receive it every weekday morning.
