Kerry Stokes' Seven Group has given embattled Nexus Energy $30 million to stay afloat long enough so it can either buy the assets or they can be sold.
The company's administrators McGrathNicol revealed the interim financing to keep Nexus's nine subsidiaries solvent at a first meeting of creditors on Tuesday.
Nexus slipped into voluntary administration under a debt pile in early June when shareholders overwhelmingly rejected Seven's $26.6 million takeover bid.
Administrator Tony McGrath told creditors the process to sell Nexus's assets had begun and he hoped to have a proposal to put to creditors by early August.
Seven is also Nexus's largest creditor holding about $150 million of its debt and will try to buy the assets as part of Mr Stokes' ambition to expand into oil and gas.
Nexus's key asset is its 15 per cent interest in the Crux gas field in Western Australia's Browse Basin.
Keeping Nexus' subsidiaries afloat and not in administration prevents Crux partners Shell and Osaka Gas exercising their rights over that stake.
Oil and gas company Santos holds a $60 million letter of credit as security against failed gas deliveries over Nexus' producing Longtom gas field in Bass Strait.
Share
