Mahalo Energy looks to continue cash collateral use through July 31

By Caroline Salls

Pittsburgh, June 23 - Mahalo Energy (USA) Inc. filed an emergency motion Tuesday for the continued use of cash collateral to pay expenses and fund its operations through July 31, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Oklahoma.

According to the motion, the court denied the company's motion to obtain the only post-bankruptcy credit available to it, and Mahalo's access to cash collateral is scheduled to expire on June 25.

Without continued access to cash collateral, the company said it would be forced to cease operations almost immediately.

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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