Braskem creditors reject restructuring plan ahead of Oct. 9 deadline

· Finance · Brazil

Creditors of Brazil's Braskem shunned another restructuring proposal from the company and its shareholders ahead of a key October 9 deadline to rework some $11 billion of debt, people familiar with the matter told Bloomberg. The rejection leaves one of the Americas' largest petrochemical producers facing a looming deadline without an agreed path to restructure its borrowings, with creditors and shareholders still apart on terms. A deal by the deadline would set the framework for how the debt is extended or reduced; failure raises the prospect of a more contentious process.

Why it matters：Braskem's standoff is a test of how creditors and shareholders share losses in a large emerging-market petrochemical restructuring, with implications for cross-border debt workouts.

Key points

  • About $11bn of debt is being reworked, with an Oct. 9 deadline for a deal.
  • Creditors rejected the latest proposal from the company and its shareholders.
  • Braskem is one of the largest petrochemical producers in the Americas.

Sources (original reporting)

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