Braskem Weighs Court Protection From Creditors

Overview

• Brazil's largest petrochemical maker is considering a court petition that would shield it from creditors, with options that include a temporary injunction in Brazil or a formal recovery filing.
• No final decision has been disclosed and the company declined to comment, according to reporting that cites people involved in the talks.
• Braskem reported about $2.1 billion in cash in December but faces roughly $1.5 billion in debt coming due this year, which tightens its room to maneuver.
• A recent disaster at a company salt mine has added costs and legal risks, deepening pressure on cash after years of weak petrochemical markets.
• The Mexican subsidiary, Braskem Idesa, is negotiating financing to keep operating during a possible U.S. Chapter 11 case, a process that lets firms continue running as they restructure, while a potential ownership shift waits on European antitrust approval for IG4 Capital to buy Novonor's stake, likely not before May.