Braskem’s $11 Billion Debt Nears Restructuring Deal Amid Disputes Over Terms

Key Facts

Braskem and its creditors are nearing an agreement to restructure about $11 billion in debt, but no deal has been finalized, Bloomberg reported via Investing.com on October 24. Negotiations center on two different proposals, each combining a share issuance with the conversion of part of the debt into equity. The estimated initial package for capital contributions and debt conversion is about $4 billion under the creditors’ proposal, compared with about $5 billion under the company’s plan. Braskem confirmed that out-of-court negotiations are continuing, without disclosing further details. Bloomberg cited its sources as saying the two sides had made progress, but that a deal was still not guaranteed. The company said the parties had not agreed on restructuring terms and that neither proposal had been accepted.

Creditors propose immediately converting $1.85 billion of debt into equity, with the possibility of converting an additional $450 million in June 2029 if needed. They also support a $2.25 billion share offering, but want shareholders or third parties approved by the company to guarantee $1.85 billion of its value upfront. This condition ties part of the plan’s execution to securing a financing commitment in advance. Under Braskem’s proposal, creditors would convert $2.8 billion of their debt into equity. The proposal also includes a $1.2 billion contribution from shareholders and third parties as part of a planned $2.25 billion share offering, likely during 2026. The figures highlight differences in the size of the immediate conversion and the financing guarantee arrangements, both of which are on the negotiating table.

The negotiations come against a backdrop of high debt relative to the company’s reported metrics for the second quarter of 2026. Corporate gross debt stood at $10.4 billion on June 30, while adjusted net debt reached $9.5 billion. The company said corporate leverage, measured as net debt to earnings before interest, taxes, depreciation and amortization, was 6.74 times in the quarter. Braskem said in August that it had filed for an out-of-court restructuring covering about $10.9 billion in unsecured financial obligations. It said the goal was to provide a stable, protected and suitable legal environment for negotiating and implementing the restructuring. In its second-quarter results disclosure, the company described proposals from creditor groups as indicative and non-binding, and said it was seeking a consensual, comprehensive and orderly solution for its capital structure.

Braskem posted net income of $664 million in the second quarter of 2026, higher than in the first quarter. The company attributed the increase mainly to higher gross profit as spreads for chemicals and petrochemicals widened in international markets. The result provides financial context for the negotiations, as the company and creditors continue to discuss the terms for addressing its obligations. In trading, Braskem shares, listed under the ticker BAK, closed at $1.70 on October 23, compared with $1.60 on October 22 and $1.64 on October 21. The supplied closing data do not include the session’s high and low prices on October 23. An earlier EL7 report published on October 25 said the targeted $11 billion in debt remained unresolved despite the proposals to restructure it. The closing-price trend alone does not establish that the market had assessed the proposals or their potential impact.

Bloomberg sources set November 22 as the deadline for reaching an agreement, with a deal potentially coming before then. Until that point, both proposals remain under negotiation without final acceptance, according to reports on the company’s position. The creditors’ proposal requires an advance commitment to guarantee part of the offering, while Braskem’s plan sets a different amount for debt-to-equity conversion and for contributions from shareholders and third parties. The company had said in an earlier disclosure that offers it received from creditor groups were non-binding. Braskem says discussions are continuing but has provided no further details on the deliberations. November 22 remains the next stated milestone in the out-of-court restructuring process.