Braskem and GPA pursue extrajudicial debt recovery in Brazil

A court in São Paulo has approved the processing of Braskem’s extrajudicial recovery plan, which aims to reorganize approximately US$ 10.9 billion (R$ 56.3 billion) in debt. The decision by the 2nd Bankruptcy and Judicial Recovery Court includes a 120-day suspension of executions brought by creditors subject to the process. This suspension covers actions related to included credits, bankruptcy filings, and asset seizures. Braskem noted the initiative is strictly financial and does not include suppliers or other non-covered groups. The final plan may involve converting some debt into equity, with major shareholders IG4 and Petrobras potentially providing liquidity support.

Separately, the retailer GPA is facing a legal challenge regarding its own extrajudicial recovery plan. The Public Ministry of São Paulo (MPSP) has expressed opposition to the plan's ratification. In response, GPA has filed a defense to contest the MPSP’s position and uphold the validity of its restructuring efforts. The judicial decision on the ratification remains a critical step for the group to implement its financial reorganization measures.