Monday, November 10, 2014

KiOR files bankruptcy, excludes Columbus plant, misses payment to Mississippi.

 The death spiral continues.  KiOR issued the following press release:

Pasadena, Texas—November 9, 2014— KiOR, Inc. (OTC: KIOR) (“KiOR” or the “ Company ”) announced today that as part of its refocus on research and development, it has accepted a bid for substantially all of its assets from certain affiliates of Vinod Khosla that have been providing and will continue to provide senior secured financing to the Company. The Company has also filed for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware (the “ Court ”). Under the Bankruptcy Code, the bid is subject to higher and better offers and Court approval. The Company’s non- operational production facility in Columbus, Mississippi, which is owned by a wholly- owned subsidiary of KiOR, is not included in the filing.
During this proceeding, the Company has entered into an agreement for debtor-in- possession (“ DIP ”) financing with an affiliate of Mr. Khosla, which will provide up to $15 million of additional financing for the Company to fund operations while in Chapter 11 and facilitate the sale and restructuring process.
As is customary, the Company has filed various “first day” motions with the Court seeking authority to continue its current business operations without interruption. The requests include authority to pay salaries and provide benefits to employees, authority to pay ongoing, undisputed obligations to vendors and suppliers that provide goods and services during the bankruptcy case, and approval of the DIP financing.
KiOR anticipates moving through this proceeding as quickly as possible with a potential auction requested in December 2014, and the sale consummated as soon as possible thereafter. The bid and DIP financing are subject to normal closing conditions for transactions of this kind.
Common stock investors should note that effective November 6, 2014, the Company has been delisted from trading on the NASDAQ stock exchange and that other creditors have priority over shareholders under the provisions of the U.S. Bankruptcy Code. The Company does not anticipate any recovery for existing KiOR common shareholders as part of these proceedings.
Additional information regarding KiOR’s Chapter 11 proceedings can be found at .
The AP reported last week:

Biofuel maker KiOR said Friday that the $1.8 million loan payment it missed to the state of Mississippi means it now owes more than $312 million immediately.

The company was supposed to make the payment to the Mississippi Development Authority by midnight Wednesday, the end of a grace period following a deadline of Oct. 31. No money was received.

Even before Wednesday, Mississippi sent a default notice saying KiOR owed the $69.4 million in principal, and $9 million-plus in interest trigged by the default, for a total of $78.6 million.

KiOR, based in Pasadena, Texas, borrowed $75 million from Mississippi to build a refinery in Columbus meant to make fuel from wood chips. But the $230 million plant never worked as designed and KiOR laid off almost all of its workers.

If payments had been made regularly, Mississippi would have charged no interest. The state had already delayed the deadline for the $1.8 million payment by 120 days, in exchange for a $250,000 payment. At the same time that extension was signed, KiOR hired investment bank Guggenheim Partners to sell the company or raise money.

KiOR said in a Friday stock filing that the default notice triggered provisions making another $234 million in loans immediately due in addition to what it owes Mississippi. Company officials did not respond to phone calls and emails Friday seeking comment.

"MDA was aware of the potential for cross default when the notice letter was sent to KiOR," authority spokeswoman Marlo Dorsey wrote in an email. "Throughout this process, MDA has taken the necessary steps to protect the state's rights and remedies."

Update: State Auditor Stacey Pickering issued this press release:

State Auditor Stacey Pickering issued the following statement regarding the Chapter 11 Bankruptcy of  KiOR, Inc:

“The Office of State Auditor has obtained information from MDA and we are working with all entities involved for a logical resolution to the facts under review.”


Anonymous said...

"As long as I’m Governor, the rip-offs like the Beef Processing Plant are history."

Haley Barbour
Neshoba County Fair
July 26, 2007

Haley's Public Trough said...

"Today I am signing legislation to pay the cost of a bad attempt at economic development. Mississippi Beef Processors, a creation of a legislative process led by the current House leadership, is costing the taxpayers $40 million. "The last administration got snookered on Mississippi Beef Processors, and the Legislature ended up buying a pig in a poke. We're not going to have that kind of good ole boy logrolling any more. We're not going to trade beef for pork."

~~ snip ~~

"I call on every Legislator to support progress, not pork in the area of economic development - to put job creation and economic growth for our state in front of pork barrel politics".

Haley Barbour
June 2, 2005

Anonymous said...

Phil was in the with Haley! Even had KIOR take part in his Energy Summit!

Anonymous said...

Diddly squat, chomp change! Kior is the future here in fake-conservative Mississippi! God, I pray that stupid people continue to come out and vote here in Mississippi, and that someone makes Austin and Henry return my grandma's shrimp and grits recipe so Marsha can fix it again for the trustees!

Anonymous said...

Between KiOR and Twin Creeks Haley's pushing $95-$100 million in lost taxpayer money. But no need to total the tab now as there are more of his "deals" also about to turn to shit. Why aren't we hearing from the chorus of Repugnantcans who wailed on about the Beef Plant?

Anonymous said...

These audits after the fact are a joke. Fiscal conservatism: ain't it great?

Anonymous said...

Please add to that chump change on Kior the big bucks for Kemper: nearly $4 Billion that MPC ratepayers are responsible to pay.

Anonymous said...

Nobody is going to jail!

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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

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This is definitely a Beaver production.

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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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