KiOR files for bankruptcy
KiOR has announced that, as part of its refocus on R&D, it has accepted a bid for substantially all of its assets from certain affiliates of Vinod Khosla that have been providing and will continue to provide it with senior secured financing.
KiOR has also filed for relief under Chapter 11 in the US Bankruptcy Court for the District of Delaware. Under the Bankruptcy Code, the bid is subject to higher and better offers and court approval. The company's non-operational production facility in Columbus, Mississippi, which is owned by a wholly owned subsidiary of KiOR, is not included in the filing.
During this proceeding, the company has entered into an agreement for debtor-in-possession (DIP) financing with an affiliate of Mr. Khosla, which will provide up to $15 million (€12 million) of additional financing for the company to fund operations while in Chapter 11 and facilitate the sale and restructuring process.
KiOR anticipates moving through this proceeding as quickly as possible with a potential auction requested in December, and the sale consummated as soon as possible thereafter. The bid and DIP financing are subject to normal closing conditions for transactions of this kind.
The company has been delisted from trading on the NASDAQ stock exchange and that other creditors have priority over shareholders under the provisions of the US Bankruptcy Code. The company says it does not anticipate any recovery for existing KiOR common shareholders as part of these proceedings.