Braskem SA and its new controlling shareholder, IG4 Capital, are struggling to garner sufficient creditor support for their proposed out-of-court restructuring plan. The petrochemical company has not yet met the legal threshold for an extrajudicial recovery, which it had aimed to pursue by July. Disagreements among creditors primarily revolve around concerns of uneven treatment and the handling of collateral. This failure heightens the possibility of Braskem needing to seek emergency court protection against its creditors.
The current restructuring proposal, expected to be presented soon, aims to extend debt maturities, reduce coupon payments, and introduce longer grace periods. This plan, however, does not include any new capital injection or a debt-to-equity swap, according to a person familiar with the situation. The lack of a capital injection and concerns about how different creditors will be treated are significant hurdles in gaining widespread approval.
Braskem is seeking creditor backing for this out-of-court process ahead of substantial debt payments due in July. The inability to secure enough support from creditors to proceed with an extrajudicial recovery could force the company into a more formal and potentially more challenging court-supervised restructuring process. The situation underscores the difficult negotiations between the company, its new controlling shareholder, and its diverse group of creditors.
