Brazil’s Braskem Files For Extrajudicial Recovery On US$10.9 Billion Debt

Braskem Idesa, a Mexican petrochemical company, filed for bankruptcy in the U.S. and plans to emerge within 60-90 days. The firm will reduce its debt from $2.5B to $1.6B and raise capital. Braskem, the majority shareholder, will contribute $476M. Operations will continue as usual. According to a person familiar with the deal, $126M has already been paid.

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.

Braskem Idesa, a Mexican petrochemical joint venture of Brazil’s Braskem and Grupo Idesa, filed for Chapter 11 bankruptcy in the U.S. after creditor agreements to cut debt by more than $920 million, according to Reuters. The company expects to exit within 60 to 90 days and said operations would continue without interruption.

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.