COLUMBUS, Miss. (WCBI) — Troubles for Kior’s pioneering alternative fuels plant in Columbus could be mounting.
In its end-of-the-year financial report filed Monday, the company reported the Security and Exchange Commission has opened an investigation into the company’s reporting of production levels and other matters. The report suggests someone has complained the company may have misreported production levels and quality to influence investors or stock prices.
The SEC issued subpoenas for financial and operating information at the end of January.
The report nor the securities commission have released any timeline for the investigation or what action might be taken.
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COLUMBUS, Miss. (WCBI) — Kior says it has “substantial doubts” about its ability to continue to operate.
Today’s disclosure came in the company’s end-of-the-year financial filings with the Security’s Exchange Commission.
The news confirmed fears about the next-generation alternative fuels plant that started operating 18 months ago but has been plagued by operational and financial difficulties.
In January, the company announced it planned to stop operations during the first three months of this year for modifications to improve efficiency and output. At the time, company president Fred Cannon said the company needed to raise $10 million to pay for the upgrades and more than $20 million for additional research.
But in the report filed today, it said it was putting the $225 million plant in “idle” state until it can raise financing for more research and plant improvements.
It notes an investor has pledged $25 million but terms of that have not been finalized and the money only is available once certain production goals are met.
The filings give no timetable for any plant restart or what may happen to its 100 employees. Last month, company President Fred Cannon said those workers would remain.
In January, KiOR paid the city and county about $1 million in taxes but the future of those payments next year now is in doubt, which could cause a significant hit to city and city school finances.
Click here to view the KIOR Fourth Quarter results filing