KiOR auction cancelled; lead bidder commits to support Chapter 11 plan

By Caroline Salls

Pittsburgh, Jan. 8 – KiOR, Inc. cancelled the Jan. 9 auction for substantially all of its assets and secured a plan of reorganization support commitment from the stalking-horse bidder, according to a Jan. 8 filing with the U.S. Bankruptcy Court for the District of Delaware.

KiOR said it received no other qualified bids for the assets, other than the stalking-horse bid from affiliates of Vinod Khosla that provide senior secured financing to the company.

As previously reported, under the stalking-horse bid, KiOR’s business will be preserved as a going concern through the cancellation of existing equity and the issuance of new equity interests to the stalking-horse bidder.

The equity will go to the stalking-horse bidder in exchange for cancellation of substantial secured debt and the provision of exit financing, the company said when it filed bankruptcy in November.

In addition, the company withdrew a motion for assumption of a previous plan support agreement in connection with the stalking-horse bidder’s support commitment.

Pasadena Investments, LLC, KFT Trust, Khosla Ventures III and VNK Management are the specific parties to the plan support commitment.

A sale hearing is scheduled for Jan. 15.

KiOR is a Pasadena, Texas-based development-stage, next-generation renewable fuels company that filed for bankruptcy on Nov. 10. The Chapter 11 case number is 14-12514.

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