Braskem faces creditor deadlock amid restructuring and US Chapter 15 dispute

Brazilian petrochemical giant Braskem has failed to reach agreement with roughly one‑third of its creditors, heightening the risk of a formal judicial recovery. A 60‑day protective injunction in Brazil has suspended about R$ 2.7 billion in payments while negotiations continue. Some creditor groups have offered new financing backed by almost all of the company’s assets, a proposal that meets resistance from Braskem’s controlling shareholders and banks, who argue the firm is already over‑leveraged.

In parallel, a group of New‑York‑based funds linked to Bracebridge Capital is pursuing litigation in the United States to separate the restructuring of Braskem America Finance. The creditors contend that the Delaware‑incorporated vehicle should not be covered by the Chapter 15 protection granted in Brazil, arguing it has a distinct centre of interest. The dispute involves assets estimated at about R$ 2.9 billion and could lead to a stand‑alone Chapter 11 filing for the U.S. entity while the rest of the group proceeds under the Brazilian plan.