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KiOR retains investment bank to explore sale or restructuring

kior logoCOLUMBUS — Struggling biofuel maker KiOR, deeply in debt to the state of Mississippi and others, says it has hired an investment bank to try to sell or restructure the company.

KiOR, based in Pasadena, Texas, announced it had hired Guggenheim Partners in a yesterday stock filing.

KiOR’s cash level is unclear, but the company borrowed $250,000 on July 3 from KFT Trust, controlled by backer Vinod Khosla. The same day, KiOR agreed to pay $250,000 to the Mississippi Development Authority. In return, MDA allowed KiOR to delay a $1.9 million payment on KiOR’s $69.4 million debt to the state.

It’s unclear if Khosla is willing to lend more. In the same filing, KiOR says a $25 million line of credit with KFT Trust has been cut to $10 million already borrowed.

About Megan Wright

One comment

  1. Does this surprise anyone, when is the state going to take an interest in the true economic force in Mississippi, The Small Business Owner, I know dozens of people who could take 10% of this amount and turn it in to long term jobs in sustainable industries and retail projects.
    The state legislature, if they approved this, should be liable for it. Pie in the sky projects like this and the ill fated “Where’s the Beef” project are a joke.

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