Marion Energy (ASX:MAE) has reached an agreement for Castlelake...

Marion Energy (ASX:MAE) has reached an agreement for Castlelake LP to provide short-term working capital and joint engaged Riviera-Ensley Advisers to sell the Clear Creek and Helper fields in Utah.

REA will collect any non-binding offers by 25th February 2015 and will determine by 2nd March if there is sufficient interest for a sale of Clear Creek.

Marion and Castlelake will also continue to attempt to refinance the Castlelake credit facility.

If there is insufficient interest in a sale or refinancing, Castlelake will take possession of the Clear Creek by credit bidding its outstanding amount by 6th March.

During this process, Castlelake will stay any action against Marion.

In early December 2014, The U.S. Federal Bankruptcy Court had refused an application by Castlelake to set aside Marion’s bankruptcy.

However, it also refused an application by the company to allow super-priority for working capital funding during the bankruptcy period, which will last until 1st June 2015.

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