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KiOR casts doubt on company's future

(Susan Parker)
(Susan Parker)
Reported by: Mel Carlock
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Updated: 5/15 1:17 pm
PASADENA, Tex. (WTVA) -- The future of KiOR's Columbus plant remains in doubt according to the company's latest filing with the Security Exchange Commission. 

In Form-10Q filed Monday, the company says the Lowndes County plant has undergoing some upgrades, but workers are currently in the process of putting the plant into a safe, idle state.

Company officials say that will enable them to restart the facility pending acheivement on research and development and if they are able to raising additional working capital.

The company received $25 million in March and said the money would help keep them in operation through August.

KiOR officials say they don't see any chance of generating revenue unless they can restart the Columbus plant, which stopped production in December.

The company converts wood chips into fuel by creating a synthetic crude oil and refining it into gasoline and diesel.

KiOR was able to produce the fuels at the Columbus facility, but were never able to reach "steady state" production levels.

The company filing says it owes nearly $229 million in long term debt, including over $69 million to the Mississippi Development Authority.

Officials say they do not anticipate having the money to make a payment to MDA in June.

The State of Mississippi provided $75 million for the company, which said it intended to build five facilities in the Magnolia State.

Work had started on a second facility in south Mississippi.

KiOR officials say if they can't secure more financing by August 31 the next course of action is for the company to file bankruptcy.

The company employs nearly 100 people at the Columbus facility.




 

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