Mexico’s Braskem Idesa files for bankruptcy in US to reduce debt

Braskem Idesa, a Mexican joint venture majority-owned by Brazil's Braskem SA, filed for US Chapter 11 bankruptcy to restructure $920 million in debt. Braskem SA will inject up to $476 million to maintain control. The prepackaged plan, agreed with creditors, aims to reduce senior debt from $2.5 billion to $1.6 billion.

Braskem Idesa, S.A.P.I. announced a consensual restructuring agreement with major stakeholders and filed prepackaged Chapter 11 in the U.S. to reduce debt and raise fresh capital. It targets emergence in 60 to 90 days. Senior debt is expected to fall from about $2.5B to $1.6B, with Braskem contributing $476M; operations continue during the process.

Reuters reports Braskem is in advanced talks with creditors on an out-of-court restructuring that could be filed in August 2026. The plan would rework more than US$10 billion of borrowings before a 24 Aug 2026 deadline. Creditors, including Elliott, are pressing Petrobras to inject fresh capital. Braskem posted net losses in 2025 and its preferred shares BRKM5 have fallen.

Braskem’s bond tender and exchange offer were rejected by creditors, who say the restructuring lacked equal treatment and a new capital injection and that they had not reached the one-third support needed for an out-of-court deal. Creditors are pressing Petrobras, which holds a 36.1% stake, to provide fresh funding. Braskem has a 60-day court protection shield and missed July and August interest payments.

Braskem S.A. said its new controlling owners, including Shine I Investment Fund via IG4 and Petrobras, have filed with Brazil’s CVM and B3 to launch a tender offer to buy all remaining ordinary and preferred shares. The offer follows Petrobras and IG4’s purchase of control from a Novonor-linked entity. The deal is still shadowed by Maceió subsidence liabilities.

Banco Safra, a creditor of Braskem, appealed in São Paulo bankruptcy court to suspend the transfer of Braskem control to an IG4 Capital–advised fund. Safra says the deal’s debt-shield mechanism should apply only to competitive auctions and challenges the control-price method. Braskem’s seller Novonor disputes Safra’s standing. Braskem reported net debt of about $7.5B.