Green energy company KiOR stays afloat
By Steve Wilson | Mississippi Watchdog
For KiOR, it’s a financial buzzer-beater.
A firm owned by venture capitalist Vinod Khosla gave the struggling green energy company KiOR a $25-million loan to stay afloat until August. It is set to receive the first $5-million installment Thursday.
The company released an 8-K ruling with the Securities and Exchange Commission Tuesday and said it had secured the loan, but is still facing problems raising further capital. It’s also facing an SEC subpoena over its production rates at its Columbus plant.
IDLE: The Kior plant in Columbus, Mississippi is designed to turn wood chips into gasoline. The state loaned the company $75 million with a no-interest loan to build the Columbus facility and a larger plant in Natchez in 2010.
The company owes the state of Mississippi $69.4 million, paid in twice-yearly installments of slightly more than $1.9 million. The first payment of 2014 is due June 30.
Mississippi Development Authority spokesman Jeff Rent said the company remains in “full compliance” with their agreement with the state for the no-interest loan and if anything changed, there were remedies at the state’s disposal.
The $223 million plant is designed to convert wood chips into gasoline and diesel fuel in Columbus. The plant is an idle state and the company did not respond to questions on when production would restart.
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