Biofuels Company Won’t Pay State of Mississippi After Bankruptcy
- January 10, 2015, Fuel Fix
[[{"type":"media","view_mode":"media_large","fid":"383","attributes":{"alt":"","class":"media-image","style":"width: 306px; height: 285px; margin: 3px 10px; float: left;"}}]]Bankrupt biofuel maker KiOR and controlling shareholder Vinod Khosla say the state of Mississippi is using legal tactics in an attempt to squeeze money from the company.
KiOR, based in Pasadena, fired back Thursday at the Mississippi Development Authority’s December call to convert KiOR’s case from Chapter 11 reorganization into Chapter 7 liquidation.
“The motion reflects a continuation of the MDA’s aggressive and scorched-earth litigation in this case, which apparently is intended to extort a recovery from the debtor and the Khosla-related plan support parties,” lawyers wrote in a papers filed in U.S. Bankruptcy Court in Delaware.
KiOR denies MDA’s claims that it’s manipulating its case to benefit Khosla, a billionaire venture capitalist who has invested heavily in alternative energy. A new company controlled by Khosla is in line to buy KiOR’s assets, saying it will continue KiOR’s research meant to turn wood chips into a crude oil substitute.