Miss. Warns KiOR it Will Seek Debt, Interest

BY JEFF AMY
Associated Press

JACKSON, Miss. — Mississippi has warned biofuel maker KiOR that it could demand immediate repayment of the company’s entire $69.4 million debt to the state, plus $8 million interest, if the company doesn’t make its loan payment before a grace period runs out.

Marlo Dorsey, a spokeswoman for the Mississippi Development Authority, tells The Associated Press that the state sent the letter Monday.

The Pasadena, Texas, company borrowed $75 million from Mississippi to build a refinery in Columbus meant to make fuel from wood chips. If payments are made regularly, no interest is charged.

KiOR, deeply indebted and low on cash, did not pay a $1.8 million installment Friday. A three-day grace period will expire Wednesday.

Calling the loan could force KiOR into bankruptcy and entangle the plant in litigation.