IG4 and Petrobras Take Shared Control of Braskem

Overview

• The transfer of control took effect on Wednesday when IG4’s FIP Shine assumed 50.1% of voting shares, Petrobras took 47%, and Novonor kept a roughly 4% preferred stake.
• Braskem said it received notice on June 5 that Shine I signed the first amendment to the new shareholder agreement to refine corporate-governance rules and the company will sign as an intervening party subject to board approval.
• The new governance map will be ratified at an extraordinary general meeting and leaves Magda Chambriard as board chair with IG4 partner Hélio Novaes as vice-chair while IG4 plans to propose Helcio Tokeshi as CEO and Carlos Brandão as chief financial officer.
• Braskem is preparing an extrajudicial debt-restructuring proposal that would extend maturities, cut interest payments and expand grace periods without new equity injections, seeking support from at least one-third of creditors to obtain a 90-day payment suspension and then a majority to approve a final plan.
• The company is also renegotiating contracts at its Mexican unit Braskem Idesa, including talks with Pemex to preserve control of the subsidiary, while Novonor says the sale is part of its shift back to engineering and construction.