Seven is Nexus' biggest creditor. Photo: Viki Lascaris
Seven Group Holdings has stumped up $30 million to pay for the day-to-day costs of Nexus Energy, as creditors circle over the troubled company's assets.
A creditor meeting was held by administrators McGrathNicol in Melbourne on Tuesday to provide an update on Nexus' finances ahead of a second meeting to decide the company's future, likely in August.
The oil and gas company was put into voluntary administration this month after a shareholder revolt saw Seven's takeover bid of 2¢ a share voted down.
About 20 representatives were at the creditor meeting, where it was revealed Kerry Stokes' Seven had provided a 90-day funding arrangement to keep Nexus afloat.
The administrators said the loan facility, with a $30 million limit, was necessary to ensure the underlying value of the assets was protected.
''It has been important to get that in place promptly because there are needs that have to be met,'' said McGrathNicol partner Matthew Caddy.
Seven Group Holdings chief financial officer Richard Richards attended the meeting and was approved to join the committee of creditors to oversee the administration.
The company's key asset is the Crux gasfield in Browse Basin off WA, as well the Longtom project in Bass Strait and the Echuca Shoals exploration venture in the Timor Sea.
The administrators said Nexus had struggled under a large capital expenditure requirement to develop its assets, which had been compounded by a lack of revenue.
McGrathNicol partner Tony McGrath said the main action would take place at the second meeting where creditors would vote on what to do with the company.
He said he believed Seven would ''take an interest'' in proceedings but would not be drawn on how much the company was owed.
Seven is Nexus' biggest creditor and has sought to buy the company as part of its strategy to move into the energy sector.