Braskem

Mexico’s Braskem Idesa SAPI has filed for Chapter 11 bankruptcy in the US, citing mounting financial strain and a worsening liquidity crunch. The company is described as a joint venture between Brazil’s Braskem SA and Mexican tycoon Carlos Slim.

Petrochemicals Maker Braskem SA reported better-than-expected results in the second quarter. These positive outcomes were attributed to war-related disruptions that impacted petrochemical supplies from both the Persian Gulf and Asia.

Braskem SA reported a second-quarter net income of $658 million, improving significantly from a loss recorded in the same period last year. The petrochemical company posted revenue totaling $4.3 billion and achieved a per-share profit of $1.65. Shares closed at $2.07.

Braskem’s new controlling shareholder has filed for a public tender offer to buy remaining shares, as the Maceió subsidence disaster negatively impacts the stock. The fallout from the environmental disaster continues to weigh on the company’s performance.

Banco Safra has requested a São Paulo court to suspend the sale of Braskem's control to an IG4-backed fund, arguing the deal protects the buyer from inherited debts. The bank, owed $105 million, claims debt-free transfers apply only under specific conditions.

Fitch and S&P downgraded Braskem to near-default grades, citing its court shield against creditors as a default-like process. Despite the downgrade, Braskem's shares rose nearly six percent the same day.

A São Paulo court granted Braskem a 60-day shield to freeze creditor seizures and lawsuits while the company attempts to renegotiate its $9.4 billion debt.

Activist investor Elliott and SVP Global have purchased debt in Braskem, a petrochemical manufacturer, introducing new players into its restructuring process.

Braskem is preparing an out-of-court reorganization expected to be filed by June 2026 and will not pay approximately US$141 million in bond interest due in July and US$36 million due in August. A new owner is now in control of the company.

Braskem's debt negotiations have encountered a setback, increasing the possibility of an emergency order being imposed. The situation suggests potential financial instability for the company.

Braskem is seeking creditors' agreement to extend debt maturities, reduce interest rates, and provide more grace time. The company, with $9.4 billion in gross debt, has ruled out swapping debt for shares or securing new funding from its new private-equity-controlled board.

Braskem's Mexico unit is missing out on the oil boom due to a cash crunch. The company has an ethylene-polyethylene plant in Coatzacoalcos, Mexico. Workers are affected by the situation.

Novonor has advanced the sale of a majority stake in Braskem with a signed deal. The Braskem petrochemical plant is located in Duque de Caxias, Brazil.