Business · Companies · 4 hrs ago
Braskem and creditors move closer to restructuring $11 billion in debt
Braskem and its creditors are closer to a deal to restructure about $11 billion in debt.
The Brazilian petrochemical company is negotiating with creditors through an out-of-court restructuring process.
Both sides propose new investment and debt-to-share conversions, which would reduce debt while bringing capital into the company.
The proposals put the combined value of those measures at about $4 billion under the creditors’ plan and $5 billion under Braskem’s.
Important differences remain, including how much funding shareholders or other investors would guarantee and when it would be provided.
Braskem’s proposal would leave Petrobras and IG4 Capital Group in control of the company.
The talks are continuing, with November 22 as the deadline, and a deal is not guaranteed; the aim is to agree on a final plan and avoid a court-supervised restructuring.
Braskem and its creditors are closer to a deal to restructure about $11 billion in debt, according to people familiar with the talks.
Both sides’ proposals include a share offering, capital injections and creditors converting debt into shares.
The proposals differ on the amounts and terms, and a deal is not guaranteed.
The parties have until November 22 to reach an agreement, though people familiar with the talks expect one sooner.
- Who
- Braskem, its creditors and its major shareholders.
- What
- They are negotiating a restructuring of about $11 billion in debt, involving a share offering, capital injections and debt-to-equity conversions.
- When
- The talks were ongoing as of October 24, 2026. The parties have until November 22 to reach an agreement.
- Where
- Not stated
- Why
- Braskem is seeking to restructure its debt through an out-of-court recovery process and avoid filing for court-supervised recovery.
Braskem
Creditors
Total initial capital injection and debt conversion
Braskem
Braskem’s proposal totals about $5 billion.
Creditors
The creditors’ proposal totals about $4 billion.
Share offering commitments
Braskem
Major shareholders and third parties would inject $1.2 billion into a $2.25 billion offering; major shareholders could provide up to $500 million more if needed.
Creditors
They agree to a $2.25 billion offering, but want $1.85 billion of it guaranteed now by major shareholders or third parties.
Debt conversion
Braskem
Creditors would convert $2.8 billion of debt into shares.
Creditors
Creditors propose an immediate $1.85 billion debt conversion and a further $450 million commitment for June 2029 if needed.
Braskem filed for out-of-court recovery.
Documents about the negotiations were disclosed, outlining proposals from Braskem and its creditors.
Folha reported that the parties were closer to an agreement but still had significant differences.
The deadline for the parties to reach an agreement.
- Debt to be restructured
- About $11 billion
- Proposed follow-on offering
- $2.25 billion
- Braskem debt conversion proposal
- $2.8 billion
- Creditor debt conversion proposal
- $1.85 billion immediately, plus $450 million for June 2029 if needed
- Agreement deadline
- November 22
What people are saying
continues to negotiate with creditors in its out-of-court recovery process