Braskem Restructuring Wins 39.6% Creditor Backing in Brazil
Brazil · BUSINESS
Key Facts
- —What happened Braskem filed an out-of-court restructuring in Brazil covering about US$10.9 billion in unsecured financial debt.
- —How big The restructuring covers roughly R$56.1 billion, with creditors holding about 39.6% of the debt already on board.
- —The catch The plan only covers unsecured financial debt, not trade payables or customer obligations, which Braskem says continue normally.
- —Who pays Petrobras is separately negotiating a R$2.35 billion commercial credit line to fund feedstock purchases through the end of 2026.
- —What comes next B3 will remove Braskem shares from 17 indices on 26 August, while detailed restructuring terms remain under negotiation.
- —Investor warning Reports said an investor institute warned of potential losses for holders of the US$10.9 billion debt pool.
Brazilian petrochemical giant files out-of-court debt restructuring as creditors sign on and Petrobras weighs new credit support.
Creditors representing roughly 39.6% of the debt have backed Braskem’s restructuring, according to Brazilian press reports. The Braskem restructuring was filed in Brazil on 24 August 2026, covering about US$10.9 billion (R$56.1 billion) in unsecured debt.
Braskem’s out-of-court filing
Braskem’s board approved the out-of-court Braskem restructuring, known as recuperação extrajudicial, on Monday 24 August 2026. The filing covers roughly US$10.9 billion (R$56.1 billion) in unsecured financial obligations.
This legal process in Brazil protects the company from enforcement actions while it negotiates with creditors. It is similar to a prepackaged Braskem restructuring in the United States, where terms are agreed before court submission.
The filing came as a 60-day protective order expired on the same day. Braskem had obtained this order roughly 60 days earlier to pause creditor actions while mediating terms.
The Braskem restructuring covers only unsecured financial debt, not trade payables or customer obligations. Braskem said it would continue to honor those payments in the normal course of business.
Creditor support passes the one-third mark
Brazilian law requires at least one-third of affected creditors to support an extrajudicial recovery plan. Brazilian press reports indicate that creditor support reached approximately 39.6% by the filing date.
Press reports indicate that Brazilian banks, including Banco do Brasil, BNDES, Itaú, Bradesco, and Santander, provided the core support. These banks account for about 28% of the affected debt.
International bondholder groups reportedly continued negotiations after the filing. The company raced to secure the one-third minimum before the protective order expired on 24 August.
The final support level reached approximately 39.6% of the debt, according to Brazilian press reports. This exceeds the legal threshold needed to proceed with the restructuring.
Live Company IntelligenceBraskem S.A — the full investor dossier
Valuation & profitability
Price & risk
$4.7052-wk high
$13.78
Revenue trend · 6y
Ownership
Dividend
Petrobras credit line under negotiation
Braskem disclosed on 24 August that it was in advanced talks with Petrobras for a R$2.35 billion (US$456 million) commercial credit line. The line would finance purchases of feedstock, or raw materials, under specified commercial contracts.
The credit arrangement offers a payment term of up to 30 days with a final maturity on 31 December 2026. It is structured as commercial credit, not an equity injection from Petrobras.
The line is conditional on approval by Petrobras’s internal governance bodies and execution of definitive documentation. It also requires the continuation of the extrajudicial restructuring process.
Braskem offered collateral including customer receivables of at least R$1 billion (US$194 million) per month. It also pledged escrow funds with R$300 million (US$58 million) in minimum cash retention. Judicial tax credits worth about R$2.7 billion (US$524 million) were also pledged.
Local bonds and total debt picture
Braskem carries local bonds of about R$3.2 billion (US$621 million), Brazilian reports said. The total unsecured financial debt under restructuring stands at about US$10.9 billion.
The company’s 6-K filing on 24 August noted negotiations with holders of senior notes and debentures. Brazilian debentures, or local corporate bonds, are among the affected financial instruments.
The restructuring involves two main creditor blocs: domestic banks and international bondholders. Local banks provided the essential support that allowed the filing to proceed.
International bondholder groups remain in negotiation, with terms still to be finalized. The exact breakdown of local versus international debt has not been fully disclosed by the company.
B3 index exclusion announced
B3, the Brazilian stock exchange, announced on 24 August that Braskem would be excluded from its indices. B3 will remove Braskem from 17 indices including the Ibovespa, citing the restructuring request.
The removal affects Braskem’s common shares (BRKM3) and preferred shares (BRKM5) across 17 indices. These include the Ibovespa, the main Brazilian stock market benchmark.
The exclusion takes effect on Wednesday 26 August after the close of trading on Tuesday. B3 cited the announced restructuring request as the trigger for index removal under its criteria.
The affected indices include IGCX, ICO2, IMAT, IGCT, IBRA, INDX, ISEE, and ITAG among others. The full list spans 17 different B3 indices.
Investor institute warns of potential losses
Reports said an investor institute warned of potential losses for holders of the US$10.9 billion debt pool. The restructuring could involve reduced coupons, extended maturities, or haircuts on principal.
The warning came as the scope of the Braskem restructuring became public on 24 August. Bondholders and banks holding the affected debt face uncertain recovery rates.
Analysts noted that holders of the unsecured financial debt are at risk of economic loss. The restructuring terms remain under negotiation, with no final haircut figures disclosed.
Braskem has not published projections for creditor recovery rates. The company continues discussions with international bondholder groups to finalize the plan’s economic terms.
Timing and procedural context
The filing was timed to the expiration of a 60-day precautionary injunction obtained roughly 60 days earlier. This protective order, known as tutela de urgência, had paused creditor actions while Braskem mediated.
A related Chapter 15 petition in the United States extended similar preliminary protections abroad. This gave Braskem additional breathing room with international creditors.
As of 21 August, Braskem was still evaluating restructuring options and reviewing non-binding creditor proposals. The board approved the out-of-court framework just three days later.
The detailed economic terms, including haircuts and new maturities, remain to be finalized. These will be negotiated within the legal process and ongoing creditor discussions.
What comes next for Braskem
Braskem will continue negotiating with international bondholder groups to finalize the restructuring plan. The company must secure broader creditor support to bind dissenting creditors in a confirmed plan.
The Petrobras credit line, if approved, would provide essential liquidity for feedstock purchases through year-end. This would ease pressure on Braskem’s cash position during the restructuring.
B3 index removal will take effect on 26 August. The company has not disclosed a timeline for completing the restructuring.
Braskem said it would provide updates as negotiations with creditors progress.
Frequently Asked Questions
What is a recuperação extrajudicial in Brazil?
It is an out-of-court restructuring process filed with a Brazilian court. The company negotiates terms with creditors in advance, then submits the plan for court approval.
How much debt does the Braskem restructuring cover?
The restructuring covers about US$10.9 billion, or R$56.1 billion, in unsecured financial debt. Trade payables and customer obligations are excluded from the plan.
Which creditors support the Braskem restructuring plan?
Creditors holding about 39.6% of the debt, mostly Brazilian banks, have backed the plan. International bondholder groups continue negotiations.
What is the Petrobras credit line for Braskem?
Petrobras is negotiating a R$2.35 billion commercial credit line for feedstock purchases. It has a 30-day payment term and matures on 31 December 2026.
When will Braskem shares be removed from B3 indices?
B3 will remove Braskem shares from 17 indices starting 26 August 2026. The exclusion follows the restructuring filing disclosed on 24 August.
Connected Coverage
Braskem Files Extrajudicial Recovery for US$10.9 Billion Debt
Braskem Idesa Files US Chapter 11 to Cut US$920 Million in Debt
Sources
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times