Samuel Freeman, Justin Walsh, and Adam Nikitins of Ernst & Young Australia have been appointed Joint and Several Voluntary Administrators by the Rex Group’s respective Boards of Directors, according to a media release.
Wages, redundancy entitlements owed
It was Walsh who told Rex Airlines employees in a meeting that the business is in a “very perilous financial position and has access to almost no funds,” ABC News reported.
“The business, to be very frank, is simply not viable, and administrators, after working very hard, have formed the view that [Rex Airlines] is not in a position to pay the wages of its employees moving forward,” Walsh said in the meeting as quoted by the news outlet.
According to Walsh, it would also likely take months before Rex will be able to pay redundancy entitlements that it owed to staff.
“If things go very well, we’re talking weeks, probably months before that happens,” he said.