On Wednesday, biofuel maker KiOR Inc. will go before a Wilmington, Del., bankruptcy judge to seek final approval of its chapter 11 reorganization plan.
Under the proposed plan, KiOR
will turn over control of its business to lender Pasadena Investments LLC—a company affiliated with venture capitalist and KiOR co-founder Vinod Khosla—in exchange for $16 million in debt forgiveness.
KiOR’s unsecured creditors, owed more than $79 million, voted overwhelmingly to reject the plan, but all other creditor classes approved it unanimously, court papers show.
The plan is also facing objections from a federal bankruptcy watchdog as well as the Mississippi Development Authority, which holds the bulk of KiOR’s unsecured debt.
Founded in 2007 by Mr. Khosla’s Khosla Ventures and Dutch company Bioecon, KiOR converts wood chips, logging residue and other biomass into renewable crude oil.
The company, based in Pasadena, Texas, filed for chapter 11 bankruptcy protection in November.
Also Wednesday, another Wilmington judge will hear from Frederick’s of Hollywood Inc., which recently canceled an auction of the company and plans to ask for approval of a sale to lead bidder Authentic Brands Group Inc.