Braskem Idesa has reached a comprehensive consensual restructuring agreement with its major stakeholders to reduce its senior debt from approximately US$2.5 billion to approximately US$1.6 billion. The company filed prepackaged Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas and expects to emerge within 60 to 90 days. Majority shareholder Braskem S.A. will contribute US$476 million, and upon emergence Braskem will retain a majority stake while Grupo Idesa becomes the largest minority shareholder. Operations continue uninterrupted, with unsecured creditors and trade vendors to be paid through first day motions and the reorganization plan.
Braskem SA Class ADebt reduction of over US$920 million through restructuring improves balance sheet.
Grupo Idesa becomes largest minority shareholder, but impact on its financials is not detailed.
