Meati’s property in Thornton, Colorado, has been seized by the Adams County sheriff over non-payment of almost $7 million in property taxes.
A Dec 23 distraint warrant seen by AgFunderNews commands the Adams County treasurer to seize and auction “goods, chattels, and equipment” at the biomass fermentation facility to cover $6,686,757.50 in unpaid property taxes and interest payments.
The warrant follows a Dec 8 writ of restitution from Adams County Court permitting 25 North Investors SPE1 LLC (the landlord at the site) to take possession of the premises. 25 North Investors SPE1 LLC was itself sued by Process Piping of Colorado along with Emergy Inc (dba Meati Foods, the tenant) and Canadian Imperial BK Commerce Inc in September in a bid to force the sale of the property over an alleged $117,048 in unpaid work.
Unsecured creditors get $10k after filing claims for $3.1m
A high-profile player in the alt meat space, mycoprotein producer Meati entered the Assignment for the Benefit of Creditors (ABC) process, an alternative to bankruptcy, in May 2025 after a turbulent couple of years.
Under the ABC process, a financially distressed company transfers its assets to a third-party fiduciary (the assignee – in this case an attorney called Aaron Garber) who handles the sale of the assets or the sale of the business as a going concern in the best interests of the creditors.
According to a press release issued by new owner Meati Holdings (led by informercial exec Yasir Abdul) in November, this court-supervised process resulted in Meati Holdings purchasing the business assets “free and clear of all successor liability, alter ego claims, or previous debt.”
After assuming operational control, Meati Holdings invested $14.2 million to sustain operations, settle secured obligations, and stabilize the business, said the release. “This includes satisfaction of [lender] Trinity Capital’s debt and assumption of $3.4 million in property tax liabilities.”
According to a Dec 18 motion for final distribution, Garber collected just under $140k to pay unsecured creditors.
The bulk of this went on his own fees, expenses, legal fees, and insurance, leaving just $10,000 to be distributed to a list of claimants that had filed claims topping $3.1 million. Those out of pocket include law firms, marketing firms, laboratories, equipment providers and staffing agencies.
Thornton plant ‘unprofitable and unsustainable’
The future of Meati is now uncertain.
After mass layoffs in early November, a handful of staff were brought back on short-term contracts to pack product that had already been produced, but the fermentation tanks have not been operating for a couple of months according to former employees.
Meati did not respond to requests for comment on the latest developments, but s spokesperson told AgFunderNews in mid-December that “all options are being explored to see which one makes the most sense for profitability.”
Moving forward, Meati can either source product from a third party or find a co-manufacturer able to produce its own product, which is made from a strain of filamentous fungus called Neurospora Crassa.
Finding a co-packer to produce Meati’s product would be challenging, however, one industry source told us. “My presumption, which is purely speculative, is that they will go into hibernation and try to find some other pathway. I have real sorrow for what’s happening to them, but I just don’t see a pathway out of the morass in which they find themselves.”
A tumultuous year
👉 Things spiraled downhill in late February 2025 when Meati breached a financial covenant tied to revenue and gross profit and lender Trinity Capital swept two-thirds of its available cash.
👉 In May, Meati entered an Assignment for the Benefit of Creditors (ABC) process, an alternative to bankruptcy, with a new entity called Meati Holdings emerging as the successful bidder.
👉 According to a press release issued by Meati Holdings in November: “This court-supervised process resulted in Meati Holdings purchasing the business assets free and clear of all successor liability, alter ego claims, or previous debt.”
👉 Since assuming operational control, Meati Holdings has invested $14.2 million to stabilize the business, said the firm, which said in November that it planned to extend the Meati product line, rebrand, and participate in upcoming trade shows.
Further reading:
Exclusive: Meati powers down Colorado plant. ‘All options are being explored,’ says firm
New owner now controls Meati ‘debt-free’; rebranding planned in 2026
Mass layoffs at Meati after weeks of payroll glitches
Meati in trouble again as firm misses payroll. ‘People are in group chats begging for answers’
Infomercial exec Yasir Abdul emerges as prospective buyer for Meati as firm navigates ABC process
Breaking: Meati plans “gut-wrenching” mass layoffs amid “bank-induced crisis”
