Braskem debt restructuring excludes retail investors

Braskem is negotiating a R$ 55 billion debt restructuring with a group of major creditors, including bondholders and local debenture funds, who hold approximately R$ 39 billion of the total debt. However, retail investors holding Agribusiness Receivables Certificates (CRAs) backed by Braskem's debt claim they have been excluded from the negotiations.

Represented by Felsberg Advogados and Journey Capital, these retail investors argue that excluding them increases the risk of legal challenges and could damage the Brazilian capital market by discouraging future investments. While CRAs represent less than 2% of the voting weight, representatives emphasize the need for an agreement structure that is implementable for fragmented local market participants.

Braskem filed for extrajudicial recovery in August, with creditor support currently covering approximately 40.3% of the debt subject to the plan. The company has until November 22 to present a definitive plan. Preliminary proposals involve a US$ 2.25 billion share offering and the conversion of part of the debt into equity, though consensus on specific values has not yet been reached.