Believer Meats collapses under $220 million in debts, trustee named
Court grants temporary freeze while trustee evaluates company’s lab-grown meat operations.
Lod District Court Judge Hanna Kitsis on Monday approved the request of the collapsed cultured meat company Believer Meats (formerly Future Meat) to enter bankruptcy and appointed a temporary trustee to safeguard the company’s assets.
The temporary trustee, Attorney Yoel Freilich, has been authorized to seize, preserve, and secure the company’s assets, and to manage their disposition with court approval. The court also issued a 40-day freeze on all proceedings against the company.
According to the bankruptcy petition, Believer Meats’ total debts in Israel stand at approximately NIS 34.7 million (approximately $11M), while its American subsidiary owes the parent company NIS 672.4 million ($213M). The company was unable to raise the necessary investment to operate its North Carolina plant.
In its petition, Believer Meats cited a “serious economic crisis from which it has not been able to recover, despite repeated attempts.” The company attributed its collapse to several factors: prolonged delays and rising costs in constructing its U.S. factory; slow regulatory approvals; the impact of the Swords of Iron war, during which many employees were drafted into the reserves; and the Red Sea naval blockade.
The company also struggled to secure investment due to the broader downturn in the food tech market and geopolitical concerns associated with being an Israeli company. A recent U.S. receivership proceeding against the American subsidiary, seeking a $35.2 million lien and appointment of a receiver over its assets, accelerated the bankruptcy filing.
Founded in 2018 by Prof. Yaakov Nahmias, head of the bioengineering center at the Hebrew University of Jerusalem, Believer Meats developed a platform for producing cultured meat without genetic engineering. The company raised around $390 million from investors over the years, including U.S. food giant Tyson Foods, and was considered one of the most promising startups in the cultured meat industry.
Freilich will now assess options for realizing the company’s assets, including its laboratory in Rehovot and the manufacturing plant in North Carolina, which is considered unique in scale within the industry.
“I am grateful for the court’s trust in appointing me,” Freilich said. “I am currently examining all available options to maximize value for all stakeholders. The goal is to quickly evaluate the company and its operations to determine the best course of action. All options are open.”
