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Administrators to ‘urgently’ assess Nexus finances

The administrators appointed late Thursday by Nexus Energy said they will "urgently" assess the oil and gas junior's financial position and assess opportunities to recapitalise and restructure the company, and for the sale of assets.

McGrathNicol, where three partners have been appointed administrators at Nexus after the voting down of a controversial takeover bid by Seven Group Holdings, said a meeting of creditors would be held on Tuesday June 24 in Melbourne as part of the process.

"The immediate priority of the administrators is to take control of the assets of Nexus and urgently assess its financial position," McGrathNicol said on Friday in a statement.

Partners Matthew Caddy, Tony McGrath and Jason Preston were hired late Thursday by Nexus's board as administrators after shareholders voted down a 2¢-a-share cash offer from Seven Group Holdings.

The media group, which is Nexus' main creditor, is looking to use Nexus's assets as the basis to build an energy business to sit alongside its media and industrial interests.

Seven Group said on Friday it was "disappointed on behalf of those shareholders who supported the scheme" that the deal was voted down.


It said it had supported Nexus by providing financing to ensure it could continue as a going concern, including a bridge loan of up to $40 million that allowed shareholders the opportunity to consider a solvent transaction.

"SGH remains committed to working constructively with the company," it said.

Nexus' key asset is a stake in the Crux gas and condensates field in the Browse Basin, which is slated to be used as part of Royal Dutch Shell's Prelude floating LNG project. Shell and fellow Crux partner Osaka Gas of Japan both hold pre-emptive rights over Nexus's interest in the field.

The debt-laden junior also owns the Longtom gas production venture in Victoria and the Echuca Shoals exploration venture in the Timor Sea.

Nexus shares last traded on Wednesday at 1.3¢, representing an equity value of $17.3 million.