Braskem Negotiates $11 Billion Debt Restructuring to Avoid Bankruptcy

Braskem is currently negotiating with creditors to restructure approximately $11 billion in debt to avoid bankruptcy. The Brazilian petrochemical company initiated an out-of-court restructuring process in August, and while discussions have advanced, significant differences remain regarding capital injections and debt-to-equity conversions.

Braskem proposed a $5 billion plan that includes a $2.25 billion share offering. This proposal is designed to allow major shareholders Petrobras and IG4 Capital Group to maintain control and management of the company. In contrast, creditors have proposed a total of $4 billion and are seeking $1.85 billion in guaranteed upfront payments from major shareholders or approved third parties.

Both parties have until November 22 to finalize an agreement. The outcome will determine whether the company can stabilize its finances through these capital injections or face potential bankruptcy proceedings.