Mississippi has warned biofuel maker KiOR that it could demand immediate repayment of the company’s entire $69.4 million debt to the state, plus $8 million in interest, if the company doesn’t make its loan payment before a grace period runs out.
Marlo Dorsey, a spokeswoman for the Mississippi Development Authority, said the state sent the letter yesterday.
“Due to the expiration of the forbearance period, KiOR and KiOR Columbus, LLC have been advised of the state’s intention to accelerate the obligations owed under their loan if no payment is made by the end of the grace period on Wednesday,” Dorsey wrote in an email to The Associated Press. “MDA continues to communicate with KiOR in hopes of reaching a quick resolution and will remain vigilant with respect to the State’s rights and remedies outlined in this project.”
Mississippi has first claim to the assets of KiOR Columbus, the company’s Mississippi subsidiary.
A spokeswoman for KiOR did not immediately respond to a request for comment yesterday evening.