A North Carolina court has put Believer Meats’ US subsidiary Future Meat Technologies Inc into general receivership, clearing the way for a forced sale of the cultivated meat company’s US facility as creditors move to recover tens of millions of dollars.
Kevin Sink will take control of its assets and liquidate the factory, equipment and other property to repay secured creditors including Gray Construction and Ameris Bank.
The move effectively puts Believer Meats’ US operations into court-supervised wind-down mode, signaling that the shutdown has now entered the asset liquidation phase.
The legal action filed by Gray late last year over unpaid bills for design and build work on Believer Meats’ facility in North Carolina has been stayed (put on hold).
The US receivership runs in parallel with the Israeli insolvency proceedings, with the US court recognizing that the parent company in Israel (Future Meat Technologies Ltd) is already under the control of trustee Yoel Freilich, who has asserted control over Believer Meats’ IP.
In an order filed on Feb. 6 granting the general receivership in the US, the court notes that, “The US receiver [Kevin Sink] does not agree, at this time, with all of the assertions of the trustee.” However, for the time being, Sink cannot sell Believer Meats’ IP without Freilich’s written consent and the approval of the Lod District Court in Israel.
Secured creditors at front of repayment queue
The court says Believer Meats’ “property has significant value that can be realized and applied to its various debts,” including secured claims held by Gray Construction, Ameris Bank, and other lenders.
Gray Construction is owed $36.4 million for design and construction work on Believer’s US production facility. After the company fell behind on payments, Gray accepted a $25 million secured promissory note backed by a mortgage on the plant and later agreed to a forbearance deal requiring staged repayments — starting with $22 million due in December 2025, which Believer immediately defaulted on — prompting Gray to file liens and push the company into receivership to recover its collateral.
As both the main construction creditor and a secured lender with a mortgage on the facility, Gray sits at the front of the repayment queue.
Ameris Bank is also a senior secured lender, having provided a $25 million term loan backed by a first-priority security interest in Believer’s bank accounts, machinery, and equipment. After Believer shuttered operations and defaulted in December, Ameris declared the loan immediately due, with more than $13 million outstanding, and joined the case to protect its collateral.
Other secured parties listed in the filings include Robert Reiser and Company, Leaf Capital Funding, ADM Ventures Investment Corp, GEA Systems North America, and GEA Mechanical Equipment US.
Separately, equipment lessor CSC Leasing has asserted ownership of select machinery leased to Believer Meats — assets the court says cannot be sold by the US receiver without CSC’s written authorization.
Mounting costs and stalled scale up
In its Dec 31 insolvency application, filed three weeks after it announced it had ceased operations, Believer Meats did not go into details about what went wrong, but shared some information:
👉The initial estimated cost of establishing the firm’s North Carolina facility was approximately $138 million; however, during the course of construction, the projected cost increased to approximately $154 million.
👉Construction was delayed, the regulatory approval process took longer than expected and attempts to raise additional financing in 2025 failed: “As a result, the company has reached a state of insolvency and is unable to continue its operations.”
👉At the filing date, the firm’s cash balance was ILS 270,455 ($86k), with outstanding obligations to suppliers, service providers, employees, and authorities: “The company is unable to meet its obligations as they fall due. The company is insolvent both on a cash-flow basis and on a balance-sheet basis.”
Further reading:
Insolvency filing lifts lid on Believer Meats’ mounting costs and stalled scale-up
What went wrong at Believer Meats? Sources point to risk, scale, and timing
Exclusive: Cultivated meat co Believer Meats sued by design build firm for $34m in unpaid bills
