Braskem Advances Negotiations on Nearly US$11 Billion Debt Restructuring

en.Wedoany.com Reported - On November 9, major shareholders and creditors of Brazilian petrochemical company Braskem continued out-of-court restructuring negotiations over nearly US$11 billion in debt, aiming to reach agreement on a restructuring deal by November 11. Reuters, citing two people close to the negotiations, reported that the parties are discussing a capital restructuring plan of approximately US$4 billion, about US$1 billion less than the scale previously under discussion. The company must submit an approved restructuring plan before the court procedural deadline of November 22 to avoid entering formal judicial reorganization proceedings.

The current round of negotiations involves two main arrangements: cash injection by shareholders and debt-to-equity conversion by creditors. In early November, Braskem's shareholders and bondholders held discussions in New York, United States, but failed to reach an agreement due to differences over the restructuring amount. People familiar with the matter said bondholders had previously rejected a plan involving US$3.8 billion in debt-to-equity conversion, and Petrobras's reduction of its proposed cash injection from US$1.7 billion to US$1.4 billion was one of the key disagreements that prevented the two sides from reaching an agreement.

Braskem's major shareholders, Petrobras and investment firm IG4, are both participating in the capital structure adjustment discussions. According to information disclosed by Reuters on November 9, the two sides are currently striving to reach an agreement by November 11, but that date is a non-binding target set by the negotiating parties and may be further adjusted. The negotiations were originally scheduled to achieve interim results in October, but the timeline has been postponed multiple times since then. Petrobras and IG4 have not made public comments on the latest negotiations.

Braskem initiated out-of-court debt restructuring proceedings on August 24, 2026, covering relevant unsecured financial debt. In a regulatory filing submitted on October 27, the company stated that the proposals previously exchanged by the restructuring parties were all non-binding indicative arrangements, and the relevant transaction terms remain subject to obtaining necessary approvals. In response to media inquiries on November 9, Braskem said it would disclose material restructuring developments through official channels in accordance with capital market regulatory requirements.