Braskem's creditors are rejecting the proposed out-of-court restructuring plan, instead advocating for direct capital injections from the petrochemical company's controlling shareholders, IG4 Capital and Petrobras. The proposed restructuring aims to reorganize $10.9 billion (R$56.5 billion) in financial debt, but a group of creditors is actively pressing for immediate funding from the controlling entities, viewing it as a quicker solution.
The company had sought court approval in Brazil for its restructuring plan, known as "recuperação extrajudicial," and was looking to secure support from over 50% of eligible creditors within 90 days. However, the current plan, which includes extending debt maturities and grace periods for interest payments without a capital injection, has raised questions among investors and creditors about its effectiveness. This pushback has led to significant market impact, with Braskem's Class A preferred shares falling over 30% and being removed from major B3 indexes, including the Ibovespa.
Adding to the complexity, a group of creditors, including FFI Fund, FYI Ltd., and Olifant Fund, has formally challenged the inclusion of Braskem America Finance Company in the restructuring in a U.S. court. They are questioning whether the finance company's center of main interests is in Brazil, ahead of a December 8 hearing for recognition of Braskem's Brazilian restructuring under Chapter 15. The ongoing disagreements and legal challenges indicate a struggle to gain sufficient creditor support for the current debt restructuring proposal.
