Braskem Fails to Win Creditor Backing for July Restructuring, Raising Court Protection Odds
Updated
Updated · Bloomberg · Jun 18
Braskem Fails to Win Creditor Backing for July Restructuring, Raising Court Protection Odds
1 articles · Updated · Bloomberg · Jun 18
Summary
Braskem has not secured enough creditor support to meet the legal threshold for an out-of-court restructuring it had planned to seek by July.
Creditor resistance centers on disagreements over uneven treatment among lenders and the collateral terms attached to the proposal, according to people familiar with the talks.
IG4 Capital, Braskem's new controlling shareholder, is working with the company on the debt negotiations but has so far failed to build sufficient backing.
A breakdown in the talks would increase the likelihood that Braskem seeks emergency court protection from creditors instead of pursuing the extrajudicial recovery route.