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Mahalo Energy (USA)'s DIP financing, bid procedures motions denied
By Caroline Salls
Pittsburgh, June 10 - Mahalo Energy (USA) Inc.'s motion for approval of a $2 million debtor-in-possession facility from Ableco Finance LLC and its motion for approval of the bidding procedures for the sale of substantially all of its assets were denied Tuesday by the U.S. Bankruptcy Court for the Eastern District of Oklahoma.
No reason was given for the denials.
The company had selected a stalking horse bid submitted by Ableco affiliate CME Asset Holdings, LLC in connection with the asset sale.
CME's offer included an up to $73 million credit bid, which was equal to the amount of the company's pre-bankruptcy debt, as well as a $350,000 cash component.
Mahalo Energy (USA) is a Tulsa, Okla.-based subsidiary of Calgary, Alta.-based junior, unconventional natural gas producer Mahalo Energy Ltd. The subsidiary filed for bankruptcy on May 21, and its Chapter 11 case number is 09-80795.
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