Kior accepts acquisition offer, files for bankruptcy
Nov 10, 2014 - US cellulosic ethanol producer Kior Inc (OTCMKTS:KIOR) on Sunday announced it has approved an offer for all of its assets and, at the same time, filed for bankruptcy in a Delaware court.
The troubled company said in a statement it has accepted a bid for substantially all of its activities from affiliates of financier Vinod Khosla. It noted that these bidders have been providing senior secured funding to the firm and will continue to do so in future.
Under bankruptcy rules the bid needs to be approved by the court and could be topped by alternative proposals. Kior stressed that its non-operational plant in Columbus, Mississippi was not included in the bankruptcy filing.
The firm also said it had agreed a debtor-in-possession (DIP) financing of up to USD 15 million (EUR 12m) from an affiliate of Khosla. The purpose of this funding is to facilitate the sale and restructuring process.
Last week, the biofuel maker defaulted on its loan from the state of Mississippi after failing to make a USD-1.8-million payment. As of November 6, 2014, the company’s shares are no longer trading on the Nasdaq stock exchange.