Braskem Said to Take New Debt Offer to Board as Citi Warns on Buyout
Key Facts
Braskem, the largest producer of thermoplastic resins in the Americas, is trying to restructure about US$11 billion of debt out of court. Its owners, its creditors and its minority shareholders now want three different things.
Braskem’s management was due to present a new counterproposal to its board on Friday, 25 September 2026, Bloomberg Linea reported. A day earlier, Petrobras said it will not inject capital unless the other owners match it.
Why This Matters Beyond Brazil
Braskem runs about 40 industrial units in Brazil, the United States, Mexico and Germany. Its debt talks therefore touch buyers far outside Brazil, and bondholders in New York and London.
The company is also a test of how far a state-controlled shareholder will go to rescue a private venture. Petrobras, Brazil’s state-controlled oil company, holds 47.03% of the voting shares.
Shine I, a fund advised by the turnaround investor IG4 Capital, holds 50.11% and controls the company. The remaining 2.86% sits with minority investors who are being offered an exit.
Braskem is using recuperacao extrajudicial, an out-of-court process that binds creditors once enough of them agree. It needs holders of more than half the debt to sign; 39.6% had signed when the case was filed.
Brazil’s central bank PTAX reference rate closed at R$5.1991 to the dollar on 25 September 2026. All dollar figures in this article use that rate.
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What Braskem Put to Its Board
Bloomberg Linea reported that a new counterproposal was due before the board on Friday. Its contents were not disclosed, and neither Petrobras nor Braskem would discuss them.
That detail rests on that single report and has not been confirmed by the companies. The previous plan asked creditors themselves to put in roughly US$2 billion of new money.
About US$1.25 billion of that was for buying back debt at up to half of face value. The remaining US$750 million was earmarked for working capital.
Creditors rejected that plan and asked the shareholders for cash instead. They want a commitment a court could enforce, not a conditional backstop.
What Petrobras Has Refused
Magda Chambriard, the chief executive of Petrobras, ruled out buying more of the company. “Raising our stake is not in our plans,” she said at an industry conference in Rio de Janeiro.
She added that Petrobras cannot inject capital into Braskem unless other shareholders do the same. That position was reported by Bloomberg Linea and by the trade title Cenario Energia.
William Franca, Petrobras director for industrial processes, struck a softer note at the same conference. He said the company expects a consensus with creditors to be reached.
Asked whether Petrobras might put in money, he said nothing had been decided. Creditors have asked the two owners for about US$3 billion between them.
How the Restructuring Got Here
Novonor, the former Odebrecht group, agreed to sell control of Braskem to Shine I in a contract signed in April 2026. That ended years of deadlock over the shareholding, but it did not fix the balance sheet.
Adjusted net debt stood at US$9.5 billion at the end of June, with leverage at 6.74 times earnings. UBS BB analysts estimate that a restructuring would dilute existing shareholders by 70% to 95%.
The Mexican joint venture Braskem Idesa filed a prepackaged Chapter 11 in August to cut US$2.5 billion of debt. A Sao Paulo judge granted an injunction on 24 September suspending fresh payments into that unit.
Prosecutors have not reported finding evidence of asset stripping, and no charges have been brought. UBS BB cut the shares to sell earlier in September, calling the position difficult with no simple exit.
That bank estimates net debt must fall by US$6bn to US$6.5 billion to be sustainable. Creditors and the company face a deadline of 24 November 2026 to close the agreement.
Why Citi Says the Buyout Is Not Worth Taking
Shine I is running a mandatory buyout offer for the shares it does not own. The auction is scheduled for 16 October 2026, and it would take Braskem off the exchange.
Holders would receive two first-series debentures and one second-series debenture for each share. Each debenture has a face value of R$3.08 (about US$0.59) and pays 0.10% a year.
They mature on 31 December 2090, which is why analysts treat the headline value with care. Citi wrote that the offeror itself assigns the debentures an economic value of zero.
“In our view, we do not identify a favourable scenario for minority shareholders,” Citi’s analysts wrote. Citi keeps a sell rating with a target price of R$4.50 (about US$0.87).
It also noted that Petrobras has ruled out a larger stake. Any capital increase would therefore not hand the state company more of Braskem.
The Market Reaction and the Analyst Split
Braskem preferred shares closed at R$4.05 (about US$0.78) on Friday, 25 September, up 2.27% on the day. They traded between R$3.89 and R$4.13 (about US$0.75 to US$0.79) during the session.
The gain came before Citi published its view on Saturday morning. Not every bank is negative on the name, which is what makes the debate live.
JPMorgan raised Braskem’s 2030 and 2031 bonds to overweight back in May, before the creditor rejection. It argued that tighter global petrochemical supply has improved the company’s fundamental outlook.
The bank also called a more active Petrobras role constructive for governance and feedstock supply. BTG Pactual said in April that an offer paid in debentures would probably not attract minority holders.
UBS BB and Citi both see the equity as the riskiest part of the structure. The split is less about the chemicals cycle than about who absorbs the losses.
What It Means If You Hold the Shares or the Bonds
If you hold Braskem preferred shares, the choice at the auction is between paper and the open market. Citi’s argument is that the debentures are long dated and thinly valued by the offeror itself.
Selling in the market before 16 October is the alternative, at whatever price the day brings. If you hold the bonds, the question is whether the owners sign an enforceable commitment.
A signed deal by 24 November avoids the slower court process that creditors want to escape. Failure would push the case into judicial reorganisation, where recoveries usually take longer.
If you hold Petrobras shares, watch whether the board accepts any share of a capital increase. Its management has said repeatedly that a solo injection is not on the table.
What Is Not Yet Known
The terms of the new counterproposal have not been published. It is not known whether the board approved it on Friday or asked for changes.
Neither owner has said how a proportional capital increase would be split. Creditor support was 39.6% when the case was filed, and no updated figure has been released.
The outcome of the Sao Paulo inquiry into the Mexican unit is still open. No court has ruled on any part of the restructuring.
Frequently Asked Questions
What is recuperacao extrajudicial?
It is a Brazilian out-of-court restructuring that a judge later ratifies. Once creditors holding more than half the affected debt sign, the terms bind the rest.
Why do creditors want money from Petrobras?
They argue the company cannot service its debt without fresh equity from its owners. Petrobras and IG4 are the only shareholders large enough to provide it.
What do minority shareholders get in the buyout?
Three debentures per share, with a combined face value of about R$9.24 (about US$1.78). Citi says the offeror assigns those papers no economic value.
What happens if no deal is reached by 24 November?
The case would most likely move into judicial reorganisation, a slower court-run process. Creditors and the company have both said they want to avoid that.
Sources: Money Times, Citi on the buyout offer and the debenture terms, Bloomberg Linea, Petrobras chief rules out a larger stake, Bloomberg Linea, creditors reject the plan and press the owners, Cenario Energia, shareholding, deadlines and the auction date, Seu Dinheiro, CVM clearance for the offer and the voting-capital split, Money Times, Petrobras director expects a consensus with creditors, Seu Dinheiro, UBS BB view and the prosecutors’ recommendation, Guia do Investidor, JPMorgan upgrade on Braskem bonds, InfoMoney, analyst views on the change of control
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