Braskem announced on Monday that it had filed for an extrajudicial recovery proceeding, a mechanism that allows a Brazilian company to negotiate directly with creditors before seeking court homologation of a restructuring plan. The filing covers the parent company and certain subsidiaries, collectively referred to as the "Devedoras."
According to the company's statement, the total debt subject to the process amounts to US$10.9 billion, equivalent to approximately R$56 billion at current exchange rates. Braskem said the goal of the filing is to "ensure a stable, protected and adequate legal environment for the negotiation and implementation of the restructuring of its financial obligations."
The company reported that 39.6% of creditors have already adhered to the proposed plan. Under Brazilian law, Braskem now has 90 days to reach the percentage required for court approval of an updated plan, which could eventually bind 100% of the eligible claims.
The restructuring plan includes extension of debt maturities, a financial relief period that may allow interest capitalization, and the possibility of converting part of the debt into Braskem equity. If the required creditor support is not obtained within the 90‑day window, the process could be converted into a judicial recovery.
This development follows a series of credit‑rating downgrades. In June, both Fitch and S&P Global lowered Braskem’s ratings, citing elevated debt levels and a prior grant of temporary protection by São Paulo’s 2nd Bankruptcy and Judicial Recovery Court. The 60‑day shield against creditor seizures expired on Monday without a restructuring agreement in place.
Braskem said that banks had demanded guarantees tied to the company’s assets and a new US$700 million loan, which the firm refused. The statement also noted that obligations to suppliers, customers and other stakeholders remain unchanged and continue to be fulfilled under existing contracts.
The company attributes its liquidity pressure to a challenging macroeconomic environment for the petrochemical sector. Global oversupply has pressured margins, and Braskem’s cost of goods sold consumed about 96% of its net revenue. Domestically, the extraction of rock salt in Alagoas has caused widespread soil subsidence, creating a multi‑billion‑real liability that has affected roughly 60 000 residents and led to the condemnation of about 14 000 properties.
In June, Brazil’s Federal Prosecutor’s Office filed a complaint accepted by the federal court in the Alagoas case, a development that coincided with a nearly 15% drop in Braskem’s share price that trading session. Additionally, the benchmark Selic interest rate rose from 2% in 2020 to 15% in March 2026, increasing the cost of servicing debt, a portion of which is denominated in foreign currencies.
Separately, Braskem’s Mexican joint venture, Braskem Idesa, filed for a Chapter 11‑style recovery in the United States last week, underscoring the broader stress on the company’s operations.
This article is based on single-source reporting from CNN Brasil.