Australian court finds collapsed airline Rex breached market disclosure laws

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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