Braskem's local bonds plunge to 30% of face value amid debt restructuring standoff

Brazilian petrochemical giant Braskem saw its locally issued debt securities trade at roughly 30% of face value in recent weeks, a sharp decline from the 50% discount observed in April‑May. The discount reflects a widening gap between the company’s proposal for an extrajudicial extension of payment terms and a group of creditors pushing for conversion of the debt into equity, which would dilute current owners IG4 Capital (50.1% voting stake) and Petrobras (47%).

The total debt is estimated at R$ 50 billion, with about 60% held in foreign bonds that remain priced near 50% of nominal. In late June Braskem secured a court‑ordered 60‑day stay on enforcement actions and launched a mediation process at the Câmara Wind, initially limited to major financial creditors. A bondholder has now petitioned the mediator to be admitted on equal terms, arguing that smaller holders are being excluded. The company continues to burn cash, reporting a R$ 4.6 billion cash outflow in Q1 2026, while its shares have fallen 33% over the past year.