Ex-Rex chairman admits hiding news of airline’s financial woes
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 off on a statement from Rex saying he was “optimistic that the group will achieve positive operating profit” for the financial year.
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 extend to other executives who defended the allegations against them.
More to come.
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