(Reuters) -Beyond Meat has entered into talks with a group of bondholders to spark discussions about a balance sheet restructuring, the Wall Street Journal reported on Wednesday, with shares down 13% in extended trading.
The bondholder group, which has stakes in Beyond Meat’s (NASDAQ:) $1.1 billion convertible notes, is working with law firm Akin Gump Strauss Hauer & Feld on the restructuring, the WSJ reported, citing people familiar with the case.
The fake meat producer’s reduced liquidity is attributed to the cash burn in recent quarters.
Beyond Meat and the law firm did not immediately respond to Reuters requests for comment.
Demand for Beyond Meat’s products — including hamburger patties, sausages and ground beef — has weakened as customers like McDonald’s (NYSE:) and Yum Brands saw sluggish consumer demand due to ongoing inflation.
For the first quarter, Beyond Meat posted revenue of $75.6 million, compared to the average analyst estimate of $75.2 million.
Earlier this year, the company said it would increase prices for some of its product lines from the second quarter in an effort to restore margins, while also seeking to “sharply reduce” costs.
