Rex Airlines breached disclosure laws over 2023 forecast
- An Australian court found that collapsed airline Regional Express Holdings breached its continuous disclosure obligations.
- The regulator established that the carrier lacked reasonable grounds for its positive 2023 financial year profit projections.
- The airline's new United States-based parent company experienced a minor share price decline following the court ruling.
An Australian court ruled that airline Regional Express Holdings or Rex Airlines breached continuous disclosure laws over a 2023 profit forecast.
The regulator established that the carrier lacked reasonable grounds to project positive full-year operating profits from April 14, 2023.
“Continuous disclosure is a core obligation for listed entities,” said Australian Securities and Investments Commission Chair Sarah Court.
The judgement follows recent admissions by former executive chair Lim Kim Hai concerning his involvement in the disclosure failure.
The corporate watchdog stated that timely market data remains vital for investors making active financial decisions.
The new American parent company manages a global aviation portfolio spanning overnight air cargo and commercial jet parts.
