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[BUSINESS] · Brazil, Mexico, United States · 10 sources

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Braskem files for extrajudicial recovery to restructure US$ 10 billion debt FAST-MOVING

Braskem, the petrochemical company controlled by IG4 Capital and Petrobras, has filed for extrajudicial recovery in São Paulo to restructure approximately R$ 54 billion (US$ 10 billion) in debt. The filing, made on August 24, provides the company with 90 days of protection against creditors while it negotiates a definitive restructuring plan.

The company's debt includes roughly US$ 7 billion held by international bondholders, a group that has shown resistance to initial proposals. Major banking creditors involved in the negotiations include Banco do Brasil, BNDES, Itaú Unibanco, Bradesco, and Santander. The move follows a credit rating downgrade to 'RD' by Fitch Ratings in August.

Additionally, the restructuring process involves Braskem's Mexican subsidiary, Braskem Idesa, which is currently undergoing Chapter 11 proceedings in the United States. Braskem has indicated that the goal is to achieve a consensual negotiation to establish a sustainable capital structure.

Entities

BNDES · Banco do Brasil · Braskem · IG4 Capital · Petrobras

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