Braskem Nears Agreement with Creditors to Restructure $11 Billion Debt Amid Ongoing Negotiations
Brazilian petrochemical company Braskem is reportedly close to reaching an agreement with its creditors and shareholders to restructure approximately $11 billion of debt, according to multiple industry sources. While a final deal has not yet been confirmed, the negotiations aim to alleviate the company’s significant financial pressures and secure its medium- to long-term stability.
Braskem formally filed for extrajudicial reorganisation in Brazil on August 24, 2026, seeking to restructure about $10.9 billion in unsecured financial obligations. The filing was made with the São Paulo bankruptcy and judicial reorganisation court and initiated a process intended to establish a consensual restructuring outside of court supervision. At the time of filing, creditors representing 39.6% of the claims had signed on, but the company must secure majority creditor approval by late November 2026 to avoid a court-supervised restructuring.
The company’s financial position remains challenging. As of June 30, 2026, Braskem reported gross corporate debt of $10.4 billion and adjusted net debt of $9.5 billion, with a leverage ratio of 6.74 times EBITDA. Despite these pressures, Braskem has continued to operate normally and maintain its business activities while engaging in restructuring talks.
Two main restructuring proposals have been reported. Braskem’s proposal would convert approximately $2.8 billion of debt into equity and raise about $1.2 billion through a share offering supported by shareholders and third parties. This plan is designed to allow the company’s principal owners, Petrobras and IG4 Capital, to retain control and management of Braskem, while also providing flexibility for further capital contributions potentially due by 2029.
In contrast, creditors have put forward a competing proposal that demands a larger upfront capital injection of around $4 billion, including an immediate conversion of $1.85 billion of debt into equity. This alternative plan requires major shareholders or approved third parties to guarantee $1.85 billion of the planned share offering from the outset. The precise composition of this creditor package and its terms remain undisclosed.
Negotiations have encountered obstacles, including a previous deadlock over a $3 billion capital injection demanded by creditors but rejected by shareholders. The ongoing talks have been extended to a November 22, 2026, deadline, replacing an earlier target of October 9, as the parties work to finalise terms.
Further complicating the situation, Braskem’s Mexican joint venture, Braskem Idesa, is also undergoing financial restructuring. While a U.S. court approved Braskem Idesa’s restructuring plan in September 2026, a Brazilian court has imposed restrictions on additional funding from Braskem to the Mexican unit. This ruling requires creditor support to be assessed separately for certain group entities rather than pooled across the corporate group, adding complexity to the overall restructuring process.
Braskem has not publicly confirmed the details of the negotiations, and major shareholders Petrobras and IG4 Capital have either declined to comment or not responded to inquiries. The final impact on existing shareholders, unsecured bondholders, and Braskem’s stake in Braskem Idesa remains uncertain pending the conclusion of talks.
Despite the financial challenges, Braskem continues to focus on operational excellence, liquidity preservation, and capital structure optimisation. The company has also prioritised social and environmental responsibilities, including extensive efforts to relocate residents and address impacts related to its past operations in the Alagoas region of Brazil.
The unfolding restructuring represents a critical juncture for Braskem, with the potential to reshape its capital base and ensure sustainable operations amid a volatile global market environment. Stakeholders remain watchful as negotiations proceed toward the late November deadline.