KiOR has missed its final deadline for making a $1.85 million payment on its $75 million Mississippi Development Authority loan.
The loan payment was due by the end of the day on Oct. 31 after KiOR and MDA agreed in July to a 90-day forbearance when company officials revealed they were unable to make their bi-annual payment when it was due June 30.
A three-day grace period ended Wednesday, with no payment made, the MDA confirmed Thursday afternoon.
The struggling bio-fuel company, which suspended production at its Columbus plant in January, paid the MDA $250,000 in return for the 90-day forbearance.
On Thursday, NASDAQ removed KiOR from its stock listings with KiOR stock trading at 8 cents per share.
In July, the company, which had invested $218 million in building the Columbus plant, announced it had hired a firm to perform financial advising and assist in exploring a possible merger or sale.
“MDA is working closely with its counsel and financial advisors to evaluate all options with the intent of finding the best solutions for the state in regard to the KiOR Columbus project,” MDA spokesperson Marlo Dorsey said in a Thursday afternoon statement. “MDA continues to assess any and all rights and remedies it has available and will provide updates once next steps are fully determined.”
KiOR has not responded to messages.
KiOR is backed by venture capitalist Vinod Khosla, who controls 88.5 percent of KiOR stock, and a group of investors that include Microsoft founder Bill Gates. The company shut down production of the bio-fuel it makes from wood chips and other bio-wastes in January and had failed to meet its production goals even after a longer-than-anticipated start-up period.
Since negotiating a deal to set up operations in Columbus in 2010 and beginning production in November 2013, the company has made three $1.85 million installment payments on the loan While KiOR owes the state a balance of $69.4 million, local entities stand to lose far less should KiOR file for bankruptcy.
According to Lowndes County Board of Supervisors President Harry Sanders, the local commitment to the company was $180,000, with the city of Columbus, Lowndes County and the Port Authority putting up $60,000 each, money used primarily to build and improve roads near the plant.
Aside from that, the county, county schools and the city are likely to miss out on roughly $1.1 million in in-lieu payments from KiOR, which are due each February, although Sanders said the county and city will be “first in line” for payment should the plant be purchased by another entity.
Sanders had said previously that there has been some interest in the site, although he declined to name the companies.
Slim Smith is a columnist and feature writer for The Dispatch. His email address is [email protected].
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 37 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.