(Reuters) -Beyond Meat ( BYND ) has engaged with a group of bondholders to initiate discussions about a balance-sheet restructuring, the Wall Street Journal reported on Wednesday, sending its shares down 13% in extended trading.

The group of bondholders, which has interests in Beyond Meat's ( BYND ) $1.1 billion of convertible notes, is working with law firm Akin Gump Strauss Hauer & Feld on the restructuring, the WSJ reported, citing people familiar with the matter.

The faux meat maker's reduced liquidity is attributed to its cash burn over the past several quarters.

Beyond Meat ( BYND ) and the law firm did not immediately respond to Reuters' requests for comment.

Demand for Beyond Meat's ( BYND ) products - including burger patty, sausages and ground beef - has weakened as customers such as McDonald's and Yum Brands saw sluggish consumer demand owing to sticky inflation.

For the first quarter, Beyond Meat ( BYND ) posted revenue of $75.6 million, compared with analysts' average estimate of $75.2 million.

Earlier this year, the company said it would increase prices on some of its product lines from the second quarter in a bid to restore margins, while also looking to "steeply reduce" costs.