Kior Says It Needs Capital to Continue Operating Past September

Aug 11, 2014 6:13 pm ET

Aug. 11 (Bloomberg) -- Kior Inc., a biofuel producer backed by billionaires Vinod Khosla and Bill Gates, said it needs additional capital to continue operating past September.

“Without additional funding, the company will be unable to fund its operations and meets its obligations past approximately September 30, 2014,” according to a filing today with the U.S. Securities and Exchange Commission.

Production at Kior’s commercial-scale cellulosic biofuel plant in Columbus, Mississippi, has been halted since January. The company “must raise substantial additional capital to fund the restart of the Columbus facility and the development and construction of its next commercial production facility,” according to the filing. The factory opened in 2012 as the first in the U.S. of commercial scale to convert wood waste and non- food crops into gasoline and fuel. It never reached full capacity.

Kior said last month it may sell itself after missing a debt payment of $1.88 million to the state of Mississippi, which in 2010 loaned the Pasadena, Texas-based company $75 million for the plant in Columbus. The state, which still was owed $69.4 million, agreed to a forbearance period as Kior hired Guggenheim Securities LLC to explore its options.

This followed a pledge from Khosla earlier this year to provide as much as $25 million in support, spread evenly over five monthly tranches. Kior received $100 million from Khosla Ventures LLC and Gates Ventures LLC in October to expand production at the Columbus plant.

The company reported a second-quarter net loss of $24.4 million, or 22 cents a share, and has had losses of $629.3 million since it was formed in 2007, according to the filing. Kior’s total revenue over those seven years is about $2.25 million.

Kior closed at 26 cents today in New York and has tumbled 98 percent since its 2011 initial public offering at $15.