Administrators for Regional Express say “numerous” potential buyers have expressed interest in the struggling airline despite questions surrounding the state of its books as preparations begin for the sales process as early as next week.

Rex appointed EY as voluntary administrators on Tuesday and stopped all capital city flights after the consulting firm conducted a business review of the ASX-listed company in May.

EY partner Sam Freeman said he had been contacted by a “large number” of parties interested in a potential acquisition of Rex’s business via a deed of company arrangement. The voluntary administration period is expected to be five weeks.

Rex has traditionally been a regional airline, but expanded into flying between capital cities in 2021 after receiving $150 million from investment firm PAG Asia Capital. It also owns a fly-in, fly-out charter service, National Jet Express, two pilot schools and holds a number of emergency services contracts.

“We have received a large number of expressions of interest to be involved in the sales process … We have confidence there’s going to be a lot of people participating,” Freeman said.

‘We have received a large number of expressions of interest to be involved in the sales process.’

EY partner Sam Freeman

Freeman would not confirm the identities of potential parties and said the administrators were not yet in a position to talk about Rex’s debt or the number of possible creditors.

PAG has injected more money into Rex so it can continue its regional operations during administration.