JACKSON, Miss. (AP) — Alternative-fuel maker KiOR Inc. has borrowed enough money to keep operating through August.
The Pasadena, Texas, company, which has a $225 million plant in Columbus, Miss., had warned last month that it had to raise more money for research and plant improvements.
KiOR, in a stock filing Tuesday, said it had completed a deal to borrow $25 million from an entity controlled by Vinod Khosla, who also owns 64 percent of the company's stock.
The company says it expects to obtain the first $5 million installment Thursday.
A KiOR stock filing last month said additional installments would "be conditioned on the achievement of certain performance milestones to be mutually agreed between Mr. Khosla and us." The company has warned it needs to raise more money in the long run.
Spokeswoman Helen Murphy did not immediately respond to an email seeking comment.
KiOR had warned that without the money it would default on nearly $280 million in debt, including $69.4 million it owes to the state of Mississippi.
The state loaned KiOR $75 million to help its startup, one of a number of investments made by Gov. Haley Barbour's administration in alternative-energy companies. KiOR has been making scheduled payments on the loan, but still owes $69.4 million. If the company were to file bankruptcy or default, the state would be the first creditor in line, and could seize the company's plant.