Video: State Gives KiOR More Time on Loan

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JEFF AMY/Associated Press

JACKSON, Miss. — Mississippi will give struggling biofuel company KiOR another four months to raise money and resume repaying its $69.4 million debt to the state, passing up a chance to force the company into bankruptcy and seize its Columbus refinery.

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Mississippi Development Authority spokesman Jeff Rent told The Associated Press in an email Thursday that KiOR will pay Mississippi $250,000, and the state won’t press claims for 120 days.

Rent says the $250,000 is in addition to what KiOR already owes the state.

KiOR is based in Pasadena, Texas. It owed Mississippi a nearly $1.9 million payment June 30 on what was originally a $75 million, no-interest loan. Kior said if it defaults, it could face demands from other lenders to immediately repay the entire $287 million that it owes.

Khosla Ventures of Menlo Park, California, controls 88.5 percent of KiOR stock.