Beyond Meat, Inc. (NASDAQ:BYND) saw its shares plummet 8.24% in Tuesday's trading session, continuing the downward spiral that began on Monday when the stock crashed over 40%. The ongoing sell-off is directly linked to the company's recently announced debt restructuring plan, which has raised significant concerns among investors.

The plant-based meat producer unveiled a plan to exchange over $800 million in 0% convertible senior notes due in 2027 for new 7.00% convertible senior second lien PIK toggle notes due in 2030. This restructuring would also involve the issuance of up to 326.2 million new shares of common stock. While CEO Ethan Brown stated that the plan aims to "significantly reduce leverage and extend maturity," the market's reaction has been overwhelmingly negative.

Investors are particularly worried about the potential for significant shareholder dilution and signs of financial distress. The continued downward pressure on the stock price reflects these concerns, with shares trading at $1.72 at the time of reporting, down 5.49% for the day. The negative sentiment is further reinforced by Benzinga Edge rankings, which show Beyond Meat with a negative price trend across short, medium, and long-term outlooks. As the market digests the implications of this restructuring plan, Beyond Meat's stock remains under intense scrutiny.