Associated Press
JACKSON, Miss. (AP) - 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 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, tells The Associated Press that the state sent the letter Monday.
The Pasadena, Texas, company borrowed $75 million from Mississippi to build a refinery in Columbus meant to make fuel from wood chips. If payments are made regularly, no interest is charged.
KiOR, deeply indebted and low on cash, did not pay a $1.8 million installment Friday. A three-day grace period will expire Wednesday.
Calling the loan could force KiOR into bankruptcy and entangle the plant in litigation.
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