Hundreds of former Rex employees could face an even longer wait to be paid their entitlements after administrators applied for an extension to find a buyer for the airline.
Rex entered voluntary administration on July 30, with representatives from consulting firm Ernst & Young (EY) appointed after the airline permanently grounded its fleet of Boeing 737s that operated on major capital city routes.
Documents filed in the Federal Court on Wednesday stated that administrators were requesting the convening period be extended until November 25 to give them more time to finalise the sales process for the airline, which is $500 million in debt.
A sales period for Rex officially began on August 9 following the first creditors' meeting, with administrators having received several expressions of interest from private investors.
Details of the extension application were also circulated to Rex's 4,800 creditors on Wednesday evening, including 667 of the airline's former employees who have previously been told it could be months until they receive their entitlements.
Administrators said the extension was necessary to ensure that a suitable buyer for the business could be found.
"Whilst it remains the Administrators intention to convene the meetings of creditors of the Rex Group at the first opportunity, it is our current view that the greatest return to creditors is likely to be derived from a sale or recapitalisation of the business as a going concern," the notice said.
"More time is required to achieve such an outcome.
"We expect to have a more informed view as to what time is required in the next two weeks."
The initial convening period was granted until August 27, with a second creditors' meeting to be held by September 3.
Administrators had hoped to finalise the sales period and put forward the best options to creditors at its second meeting, which was expected to be held in the first week of September.
Even if the Federal Court approves the extension request, administrators are confident that the second creditors' meeting will be held "as soon as possible" after the sales process has been completed, which is likely to be finalised before the end of September.
"This extension has been requested to provide more time to complete the sales process that was formally launched earlier this month," the administrators said in a separate statement.
"It is our view that a comprehensive and competitive sales process will secure the highest possible value for the Rex Companies, and through securing the highest value for the Companies, that will ensure the highest possible return for creditors.
"This application does not affect companies that are not in administration, including Pel-Air and the Australian Airline Pilot Academy which continue to trade normally.
"We plan to convene the second meeting of creditors as soon as possible following the completion of the sales process."
Administrators declined to comment on the identities of prospective buyers or the number of interested parties, but said they have received several notices from potential buyers.
The extension request comes a week after the federal government announced it would guarantee Rex's flights in regional and rural Australia should they be cancelled, with its regional services continuing to operate.
The extension application will be heard in the Federal Court in Sydney on Friday.
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