Biofuel maker Kior needs more funds to operate after Sep
Aug 12, 2014 - US cellulosic ethanol producer Kior Inc (NASDAQ:KIOR) said yesterday it will need additional capital to support its operations and meet its obligations "past approximately September 30."
The additional financing, if available, could help the firm meet the cash requirement of its ongoing activities for the 12 months from June 30. If its unable to secure more funds, it “will not have adequate liquidity” according to its filing with the US Securities and Exchange Commission. The firm also noted it would need more money for the development and construction of its next commercial manufacturing facility.
The biofuel manufacturer, backed by billionaires Vinod Khosla and Bill Gates, defaulted on the semi-annual USD-1.88-million (EUR 1.4m) payment on its USD-75-million loan from the state of Mississippi on June 30 and in July entered into a forbearance agreement with the state. The financing was provided in 2010 to support Kior's biofuel plant project in Columbus, Mississippi, that was intended to produce transportation fuel from wood waste and non-food crops. The facility was shut down in January 2014 for upgrades to the manufacturing process and has not been restarted.
Last month, the biofuel maker said it was mulling over the possibility of selling itself or merging with another company. Kior has suffered USD 629.3 million in losses since its establishment in 2007, according to the statement.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.