NATCHEZ — Alternative fuel manufacturer KiOR Inc. is putting its $225 million plant in Columbus in “idle” state until it can raise money for more research and plant improvements.

The disclosure came in the company’s end-of-the-year financial filing with the U.S. Securities and Exchange Commission.

In that filing, KiOR says an earlier announced second operation for Columbus will not occur until late 2015 — if at all.

Company officials have previously said an announced plant in Natchez, which was projected to create 320 direct and indirect jobs, would follow the completion of steady-state operations in Columbus and the funding of the second operation there.

KiOR also says the SEC subpoenaed information Jan. 28 about the status of the Columbus plant and biofuel projection levels as part of an investigation. KiOR faces several lawsuits claiming it misrepresented its progress at the facility.

The SEC filing states the company received a letter of commitment in March from Vinod Khosla — by far the company’s largest investor to date — for an additional $25 million, but the funding is conditioned on the achievement of performance milestones.

“Other than the commitment (from Khosla), we have no other near-term sources of financing,” the filing reads. “Because the commitment is subject to the negotiation and execution of definitive financing documents and the achievement of performance milestones, we cannot be certain as to the ultimate timing or terms of this investment. If we are unsuccessful in finalizing definitive documentation with Mr. Khosla on or before April 1, 2014, we will not have adequate liquidity to fund our operations and meet our obligations (including our debt payment obligations), and we do not expect other sources of financing to be available to us.”

Not having availability to financing will likely cause the company to default on its current financial obligations and seek bankruptcy relief, the filing states.

“New financing will require the consent of our existing debt holders and may require the restructuring of our existing debt,” the filing says. “If we successfully achieve our performance milestones that allow us to receive the full commitment in the near term, we expect to be able to fund our operations and meet our obligations until Aug. 31, but will need to raise additional funds to continue our operations beyond that date.”

The alternative fuels plant started operating 18 months ago but has been plagued by operational and financial difficulties. The plant stopped production in December.

KiOR has spent an approximate $10 million on the development of the former Belwood Country Club in Adams County, and signed an option with the county for the property.

Adams County Supervisors President Darryl Grennell said the option was for no more than two years and the county would still be able to market the property should KiOR fail.

“This is something we are going to keep an eye on closely,” he said.

KiOR stock closed at $.065 a share Tuesday, down approximately 39 percent and approaching its 52-week low of $0.60.

At one time in 2011, KiOR stock was worth more than $20 a share.

 

The Associated Press contributed to this report.