Creditors of Braskem have rejected the company's proposed debt restructuring and are pressing its main shareholders to inject fresh capital, Bloomberg reported, citing people familiar with the matter. Talks over Braskem's roughly $11B debt pile escalated after its controllers, Petrobras and IG4 Capital, softened language around a potential capital injection. Braskem's latest proposal, presented in late August, calls for creditors to provide about $2B in new money, of which $1.25B would repurchase existing debt for up to 50% of face value and $750M would go toward working capital, a shift from earlier discussions that did not include a debt haircut. Creditors are demanding an enforceable commitment from shareholders, with some saying there would be no deal without a capital injection, while Petrobras wants to avoid a Braskem bankruptcy filing but has been unwilling to provide that type of enforceable commitment. The sides remain far apart, with some creditors considering not submitting a counterproposal at all, and the possibility of a bankruptcy filing has returned prominently to the discussions.
Petroleo Brasileiro Petrobras SA ADRCreditors rejected Braskem's debt plan and are pressing Petrobras, as controller, to inject fresh capital it has been unwilling to commit to, with bankruptcy risk rising.
Braskem SA Class A