Subsequent Events |
9 Months Ended |
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Mar. 31, 2016 | |
| Subsequent Events [Abstract] | |
| Subsequent Events |
Note 18 - Subsequent Events
Secured Promissory Note and Pledge Agreement. On April 15, 2016, the Company and One Stone entered into (i) a Secured Promissory Note pursuant to which One Stone made a loan to Magellan in the aggregate amount of $625 thousand and (ii) a Pledge Agreement (the “Pledge”) pursuant to which Magellan pledged to One Stone a security interest in Magellan's investment in Magellan Petroleum Australia, Pty. Ltd. as collateral for the loan. Magellan is required to use the borrowed amounts (i) to satisfy transaction costs in connection with the Exchange, and (ii) to pay certain outstanding accounts payable. At the closing of the Exchange, the Loan Amount will be deemed to be paid in full as a portion of the exchange consideration and final Cash Amount, as defined in the Exchange Agreement, and no amounts under the Note will be repaid by the Company. If the Exchange is not consummated, the Company will be required to repay the Loan Amount. The Loan Amount is due and payable the earliest of (i) August 1, 2016 or, if the Exchange Agreement is terminated as a result of a breach by One Stone, August 1, 2017, (ii) the Exchange Agreement closing date, or (iii) immediately upon the continuance of an Event of Default (as defined in the Note) by the Company. No interest will be payable under the Note unless the Exchange Agreement is terminated (subject to certain conditions), in which case interest will accrue from the termination date at a rate per annum equal to the Prime Rate (as published in The Wall Street Journal) plus 1%.
Portland, Maine Office Lease. On April 12, 2016, the Company entered into an assignment of its lease and related sublease, both having future expiration dates of August 31, 2017, to office premises in Portland, Maine, effective May 1, 2016.
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