Trading In Rex Has Been Suspended Due To Escalating Internal Conflicts.

Rex Airlines has announced a trading halt until at least Wednesday, following a story in The Weekend Australian's Margin Call column. The article claimed that Rex (REX.ASX) had enlisted a "turnaround team" from Deloitte, one of the Big Four accounting firms, to address difficulties in its domestic jet operations. Rex shares, last traded at $0.565, have fallen nearly 50% over the past year. The halt does not affect scheduled flights.

Deloitte’s Sal Algeri and Richard Hughes, known for aiding Virgin’s recovery from voluntary administration, are leading the turnaround team. The ASX statement confirmed the trading halt at Rex's request, pending an announcement. "Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 31 July 2024, or when the announcement is released to the market," the statement read.

Company secretary Richard Kwan noted that the halt was due to an impending significant announcement related to the article published on Saturday, 27th July 2024.

This development follows former executive chairman Lim Kim Hai's attempt to remove long-serving leader and former deputy chairman John Sharp from the board. Lim, a shareholder with over a 5% stake, seeks to remove four directors, including Sharp, and appoint two new ones. Lim had earlier stepped down, with Sharp and COO Neville Howell being promoted. Meanwhile, Rex has launched a new ad campaign inspired by a 67-year-old Hollywood Golden Era movie.