KIOR Expected To Miss Payment Deadline

JACKSON, Miss. (AP) – Mississippi officials say they haven’t gotten any money from faltering biofuel firm KiOR and don’t expect any on Friday, the deadline for KiOR to make a $1.9 million debt payment.

KiOR has a grace period of three business days to make the payment, so it wouldn’t officially break its agreement until midnight Wednesday.

If the company, based in Pasadena, Texas, hasn’t paid by then, it’s unclear what will happen. Mississippi could seize the plant in Columbus, but that could force KiOR into default on other loans and force bankruptcy.

KiOR owes $69.4 million to Mississippi. On July 3, the state gave KiOR another 120 days to make the payment, in exchange for $250,000. At the same time, KiOR hired an investment bank to sell the company or raise money