Video: KiOR Fights Ex-Director as Debt Nears Due Date

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BY JEFF AMY
Associated Press

JACKSON, Miss. — Biofuel maker KiOR and a former director are sniping at each other as a deadline nears to make a debt payment to the state of Mississippi.

Former director Paul O’Connor says he tried to warn other board members about problems with KiOR’s technology to turn wood chips into an oil substitute. O’Connor’s claims that KiOR knew about problems could damage its defense in shareholder lawsuits and a Securities and Exchange Commission investigation. KiOR denies O’Connor’s claims.

KiOR, based in Pasadena, Texas, seeks to sell itself or raise more money. The company had said it would run out of cash by September’s end and could seek bankruptcy protection, but more than a week after that, has said nothing. KiOR owes Mississippi $69.4 million, but the state delayed payments until October’s end.