Braskem Seeks Judicial Shield as Creditors Reject Restructuring Proposal

Overview

• On Thursday, June 25, Braskem opened formal mediation at the Câmara Wind and filed a tutela de urgência cautelar at the 2ª Vara de Falências e Recuperações Judiciais in São Paulo to limit actions by its financial creditors.
• Creditors called Braskem’s presented plan “totalmente insatisfatória” and set conditions for support that include naming plan participants, adding contractual safeguards, restricting non‑routine financial moves, and seeking compensation for any creditor concessions.
• The company faces roughly US$8.5 billion of corporate gross debt, reported large 2025 losses and negative equity, and disclosed about US$1.7 billion of cash on hand excluding its Mexico unit plus a US$1 billion revolving line.
• Markets reacted sharply: Braskem’s shares plunged more than 10% and experienced volatile trading, while investors and analysts flagged higher risk after distressed managers boosted debt positions and banks cut price targets.
• Mediation and the limited injunction do not suspend obligations to suppliers or customers, but legacy environmental liabilities from the Maceió salt‑mining crisis and the company’s weak cash runway make a consensual extrajudicial recovery uncertain and risky for local communities and creditors.