Embattled airline Rex could find a new owner in the coming month despite administrators heading to court to appeal for a lengthy extension on their time in charge.
Several weeks after entering voluntary administration, the debt-laden regional carrier will remain under the watch of EY Australia for another three months.
The airline's administrators went to the Federal Court on Friday to ask for their convening period to be extended out to no later than November 25.
The initial administration period was slated to end on August 27.
Rex's fleet of Boeing 737s operating between major metropolitan centres was grounded after management of the airline was handed over, but regional flights remain in the sky.
In court, lawyers for the cash-strapped carrier argued the extension should not be viewed as delaying a sale and binding offers were set to be made in mid-September.
“That's the timing the administrators hope to achieve, but it's not set in stone for obvious reasons, they want to create the competitive tension,” barrister Daniel Krochmalik told the court.
Non-indicative offers had already been made, the court was told.
The three-month extension could be a blow for the more than 600 workers who have been made redundant to date.
Transport Workers Union national secretary Michael Kaine pleaded with the administrators to provide them with some certainty.
“Rex workers have already been in limbo for weeks waiting for the outcome on their owed entitlements - we need to see those workers receive their entitlements as quickly as possible,” he told AAP.
“It has still not been explained to redundant workers of now-defunct Regional Airways Limited why the business, despite being shut down and not a part of any sale discussions, has not yet been liquidated.”
But Rex's administrators denied the extension would prevent the employees accessing their entitlements as early as possible.
Its lawyers argued all five arms of the Rex business that were under administration would be "jointly and separately liable" for the debts of related companies.
“There's no reason to think a liquidation scenario will provide employees who are no longer employed with access to their entitlements necessarily more quickly,” Mr Krochmalik said.
Justice Elizabeth Cheeseman formally granted administrators the extra time on Friday afternoon.
The federal government has stepped in to guarantee bookings on regional flights, but no details of any further bailout package have been revealed.
In a statement to the airline's roughly 4800 creditors, Rex administrators said they would have a more accurate timeline on the future of the business within the coming fortnight.
“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 … more time is required to achieve such an outcome,” the administrators said.
The airline is about $500 million in debt and has launched an asset sale as well as the buyer search.
A second creditors' meeting, yet to be scheduled, will include a vote on whether to return the Rex companies to the existing board, place them under a deed of company arrangement or liquidate.
