The former executive chairman of Rex Airlines has capitulated just days into a major trial and admitted to failing to disclose the airline’s true financial state in 2023 before its ultimate collapse a year later.
Former Rex executive chair Lim Kim Hai admitted “to all alleged contraventions against him,” the Australian Securities and Investments Commission said on the third day of a trial brought by the corporate regulator against the company and four former directors.
Lim was aware Rex faced an operating loss in February 2023 but instead signed off on a statement from Rex saying it was “optimistic the group will have positive operating profits” for the fiscal year.
The airline later recorded a major loss for the year, and was placed into administration with $500 million in debts. It continues to fly its planes under new ownership.
“Former Rex executive chair Lim Kim Hai admitted, in the Supreme Court of New South Wales, to all alleged contraventions against him,” ASIC said in a statement.
Lim’s admissions do not cover any of the other directors, who are defending the allegations against them.
More to come.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
