Believer Meats in Receivership: A Closer Look at the Company’s Financial Troubles

A North Carolina court has placed Believer Meats’ US subsidiary, Future Meat Technologies Inc., into general receivership. This decision has effectively initiated a forced sale of the cultivated meat company’s facility as creditors work to recover tens of millions of dollars owed to them.

As part of this process, Kevin Sink will oversee the liquidation of the company’s assets, which includes the factory, equipment, and other properties, to repay secured creditors such as Gray Construction and Ameris Bank.

This legal decision puts Believer Meats’ US operations into a court-supervised wind-down phase, transitioning the company into asset liquidation.

Background of the Legal Situation

A legal action initiated by Gray last year for unpaid design and build bills related to Believer Meats’ North Carolina facility has been temporarily stayed. Concurrently, this US receivership process aligns with ongoing insolvency proceedings in Israel, where the parent company, Future Meat Technologies Ltd., is already under the jurisdiction of trustee Yoel Freilich, who has claimed control over Believer Meats’ intellectual property.

According to a court order filed on February 6, while the US receiver, Kevin Sink, has some disagreements with the trustee’s assertions, he cannot sell Believer Meats’ intellectual property without Freilich’s written consent and approval from the Lod District Court in Israel.

Secured Creditors in Position for Repayment

The court has noted that Believer Meats’ “property has significant value” that can be utilized to address various debts, including those owed to secured creditors like Gray Construction and Ameris Bank.

Gray Construction, which is owed $36.4 million for work done on Believer’s production facility, encountered difficulties when the firm fell behind on its payments. Gray accepted a $25 million secured promissory note, later entering a forbearance agreement requiring staged repayments—$22 million of which was due in December 2025. Believer’s immediate default led Gray to file liens and push for the receivership.

As both the principal construction creditor and a secured lender with a mortgage claim on the facility, Gray stands first in line for repayment.

Ameris Bank also holds a senior secured position, having issued a $25 million term loan secured by first-priority claims on Believer’s bank accounts, machinery, and equipment. Following the company ceasing operations and defaulting in December, Ameris declared the loan due with over $13 million outstanding and joined the case to safeguard its interests.

Financial Concerns and Operational Shutdown

In its insolvency application filed on December 31, shortly after announcing the cessation of operations, Believer Meats offered some insight into its financial woes:

• The initial estimated cost for establishing the North Carolina facility was around $138 million, but escalated to approximately $154 million during construction.
• Construction delays, extended regulatory approval processes, and unsuccessful attempts to secure additional financing in 2025 culminated in the company’s insolvency status.
• As of the filing date, the company’s cash balance totaled approximately $86,000, facing outstanding obligations to suppliers, service providers, employees, and authorities, indicating a severe inability to meet its financial commitments.

Further Reading

• Insolvency filing reveals Believer Meats’ rising costs and halted growth.
• What went wrong at Believer Meats? Insight on the risks and challenges faced.
• Despite setbacks, key players maintain optimism for the cultivated meat sector.
• Exclusive: Cultivated meat company Believer Meats sued for $34 million over unpaid debts.