Petrochemical company Braskem has initiated an out-of-court restructuring process in Brazil, according to two sources with direct knowledge of the matter.
The filing comes as Braskem faces a debt load exceeding $10 billion across its operations in Brazil, Europe, and the United States. The company’s financial strain has been compounded by prolonged low petrochemical prices and operational disruptions linked to a disaster at its salt mines in Brazil’s Northeast region.
Braskem’s U.S. subsidiary, Braskem Idesa — a joint venture with Mexico’s Grupo Idesa — had already sought bankruptcy protection under Chapter 11 in the United States one week prior. The company had been exploring restructuring options for its Mexican operations as part of broader efforts to stabilize its financial position.
Reuters reported earlier this month that Braskem was in advanced negotiations to file for an out-of-court restructuring in Brazil before the end of August. The company had been operating under a 60-day emergency protection period that was set to expire at month-end.
Braskem did not immediately respond to requests for comment regarding the restructuring filing.
