Braskem debt restructuring negotiations continue without agreement

Petrochemical company Braskem has disclosed its updated business plan and debt restructuring proposals following a period of confidential negotiations with investors. Despite multiple meetings with major shareholders and creditors, no agreement has been reached regarding the terms of the restructuring.

Creditors, represented by a committee, have extended the negotiation deadline to October 30, 2026. The creditors are requesting a $1.85 billion capital injection from shareholders and the conversion of an equivalent amount of debt into equity. In response, Braskem has proposed a capital injection of up to $1.7 billion to be paid in installments.

If the creditors' proposal is accepted, the combination of the capital injection and debt-to-equity conversion would reduce net debt by at least $3.7 billion, aiming to keep leverage below three times the average EBITDA. The creditors' proposal also includes provisions for further debt conversion through 2029 if leverage targets are not met, and seeks rights to approve significant investments, such as the Transforma Rio industrial expansion project.