Future Meat Technologies (Believer Meats) Files for Insolvency in Israel
The Lod District Court in Israel has granted an application from Future Meat Technologies Ltd, operating under the name Believer Meats, to initiate insolvency proceedings. This decision includes the appointment of a trustee to oversee the interests of the company’s creditors.
Appointment of a Trustee
As per Israeli media reports, attorney Yoel Freilich from Gissin & Co has been designated as the trustee. His role will be to manage the company’s assets, and the court has implemented a 40-day stay on all proceedings against Believer Meats, effectively freezing any enforcement actions by creditors during this time.
Financial Overview
In its bankruptcy petition, Believer Meats disclosed that its debts in Israel total approximately $11 million. Additionally, the company’s U.S. subsidiary is reported to owe around $213 million to its parent company, according to Calcalist.
Insolvency Details
In the insolvency application filed on December 31, mere weeks after ceasing operations, Believer Meats emphasized that a stay of proceedings was essential “to prevent irreversible harm.” While the firm did not elaborate on the challenges faced, new insights were provided:
- The initial cost projection for establishing its North Carolina facility was approximately $138 million. However, this figure escalated to around $154 million due to various unforeseen issues.
- Delays in construction, an extended regulatory approval timeline, and unsuccessful attempts to secure additional financing for 2025 contributed to the situation, leading the company to declare itself insolvent.
- At the time of the filing, the company reported a cash balance of ILS 270,455 (around $86,000) with outstanding debts to suppliers, service providers, and employees, indicating it could not meet its obligations as they became due.
Legal Implications and Future Prospects
The effect of this insolvency filing in Israel on a recent lawsuit filed against Future Meat Technologies Inc. in the U.S. remains uncertain. The lawsuit, initiated by Gray Construction in North Carolina, alleges unpaid bills amounting to $34 million for work completed at the company’s U.S. production facility.
A U.S. district court in North Carolina has given Believer/Future Meat until January 28 to respond to the lawsuit, although no public Chapter 11 or Chapter 15 bankruptcy filings have been noted for Future Meat Technologies, Inc. in the U.S.
Investors and Responses
Hedosophia, a significant investor in Believer Meats, has yet to respond to inquiries regarding the situation.
Further Reading
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