On Monday, plant-based meat producer Beyond Meat, Inc. (BYND.US) saw its stock price plummet. As of press time, the stock fell over 28% to $2.046. The company announced a debt restructuring plan that will reduce over $800 million in debt through debt-to-equity conversion.

According to filings, approximately 47% of creditors holding $1.15 billion in convertible bonds due in 2027 have agreed to exchange them for $203 million in new debt and 326 million shares of common stock. If all creditors participate in the conversion, they would hold 88% of the company's equity.

The new debt is structured as "payment-in-kind" debt, allowing the company to pay interest with additional debt, carrying an annual interest rate of 9.5%. Beyond Meat, Inc. is currently facing challenges including weak demand in the US market, high food prices, and changing health perceptions.

Analysts expect that the company will struggle to achieve sustained profitability until mid-2026.