Dive Brief:

• KIOR, an organic waste-to-biofuel firm, filed for Chapter 11 protection in U.S. Bankruptcy Court.
• The Pasadena, TX-based company disclosed that it accepted a bid that includes a majority of its assets from affiliates of venture capitalist Vinod Khosia, who has been pumping financing into the company. The proposal needs court approval and is subject to higher bids.
• Documented issues regarding the quality of the fuel, higher than anticipated production costs, and low pricing are cited as the reasons behind the bankruptcy filing. 

Dive Insight:

KIOR will retain ownership of its production facility in Columbus, MS during the bankruptcy. During the proceedings, it was revealed that the firm established an agreement with Khosia affiliates, who are expected to distribute $15 million in financing for operations while the company moves through Chapter 11.

The company plans to continue its day-to-day functions at this time, and an auction for the firm is tentatively scheduled for sometime in December.