Air T Finalizes Rex Acquisition Financials, Reveals $95.8M Bargain Purchase Gain

summarizeSummary

Air T has filed the full financial statements and pro forma information for its acquisition of Australian regional airline Rex, revealing a preliminary bargain purchase gain of $95.840 million and a significant restructuring of Rex's debt, marking a transformational and financially favorable event for the company.

check_boxKey Events · M&A and Partnerships · AIRT

• Acquisition Financials Finalized

  This 8-K/A provides the full financial statements and pro forma information for the acquisition of Regional Express Holdings Limited (Rex), which was completed on December 17, 2025. This finalizes the financial terms of the transformational acquisition previously announced.

• Significant Bargain Purchase Gain

  The acquisition resulted in a preliminary bargain purchase gain of $95.840 million, reflecting the favorable terms of acquiring Rex out of voluntary administration. This gain is substantial relative to Air T's market capitalization.

• Debt Restructuring and New Financing

  Rex's legacy creditor claims were largely extinguished via a Deed of Company Arrangement (DOCA), and a significant portion of its Commonwealth loan ($39.75 million) was forgiven and restructured into an interest-free, long-term facility. Air T also provided a new $50 million facility to Rex.

• Exclusion of Failed Operations

  The acquisition specifically excluded Rex Airlines Pty Ltd (RAL), which operated the failed domestic jet business and was placed into liquidation, allowing Air T to focus on Rex's regional operations.

auto_awesomeAnalysis · AIRT · Energy & Transportation

This filing provides the detailed financial statements and pro forma information for Air T's acquisition of Regional Express Holdings Limited (Rex), an Australian regional airline operator. This acquisition, completed on December 17, 2025, is highly significant as it resulted in a preliminary bargain purchase gain of $95.840 million for Air T, a substantial amount relative to its market capitalization. The deal involved Rex exiting voluntary administration, with most legacy creditor claims being settled through a Creditors' Trust and a substantial portion of Rex's Commonwealth loan ($39.75 million) being forgiven and restructured into an interest-free, long-term facility. Air T also provided a new $50 million financing facility to Rex. This comprehensive financial disclosure confirms the positive economic impact of the acquisition and the improved financial stability of the acquired entity, which is now focused on its regional flight services business after divesting its failed domestic jet operations. Investors should note the qualified audit opinion on Rex's financial statements, which was due to the omission of comparative financial data, not a fundamental issue with the reported figures.