Brazil Court Clears Braskem Extrajudicial Recovery Filing

Braskem's bondholders rejected a restructuring plan offering $2B in new capital, demanding Petrobras commit enforceable fresh capital. Petrobras, holding 36.1% of Braskem, has not agreed. Braskem's shares fell 49% in a year. The company faces a Nov. 22 deadline to secure creditor approval.

Braskem's creditors rejected its debt restructuring proposal and are pressuring shareholders Petrobras and IG4 Capital for a cash injection, according to Bloomberg. The company's $11B debt plan includes a $2B request from creditors, with $1.25B for debt repurchase and $750M for working capital. Creditors demand an enforceable commitment from shareholders, raising concerns about a potential bankruptcy filing.

Braskem SA (BAK) bondholders rejected a restructuring plan, demanding capital injection from Petrobras (PBR) and IG4 Capital. The proposal involves $2B in new money, including debt repurchases at 50% face value. Creditors insist on enforceable commitments, raising bankruptcy concerns.

Braskem's shares fell 15.16% to R$4.53 (US$0.88) on 16 September 2026 after UBS BB downgraded it to 'sell' with a price target cut to R$3.75. The company, already in restructuring, faces debt conversion risks and legal liabilities, with a creditor agreement deadline set for 22 November 2026.

Braskem SA (BAK) shares fell 15.2% after UBS downgraded it to Sell with a $1.50 price target, citing debt, restructuring challenges, and weak EBITDA outlook. BAK's P/S ratio is 0.13, below historical and industry averages. GF Value™ suggests it's 65.7% undervalued, but financial health is poor with solvency risks.

Braskem S.A. announced an amendment to its natural gas supply agreement with Petrobras, extending the term to 2029 and increasing the daily volume to 1,000,000 m³. The contract value is estimated at BRL 1,850 million. Voqen Energia, a Braskem subsidiary, is the buyer, and Petrobras is the seller. The transaction was approved by relevant bodies and follows arm's length terms.