Braskem negotiation rerun: common brief

Cutoff: 18 August 2026. Use only public information. Separate verified facts from reported facts and inference. Do not read prior run outputs before forming your position.

Verified public record through 17 August

  • Corporate gross debt was US$10.3B and adjusted net debt was US$9.5B at 30 June. Adjusted corporate net leverage was 6.74x. These are Braskem S.A. corporate figures. They already exclude Braskem Idesa project debt.
  • Q2 recurring EBITDA was US$1.043B, including US$869M from Brazil/South America, US$147M from the United States and Europe, and US$57M from Mexico. H1 recurring EBITDA was approximately US$1.235B.
  • Mexico utilization was 43% in Q2. Do not annualize the US$57M Mexico print.
  • Q2 working capital consumed US$547M. Braskem attributed this to higher feedstock and product prices, higher inventory volumes, and reduced payment arrangements. The price and volume components are balance-sheet level changes, not a quarterly run rate if prices and inventory stabilize. The financing component is persistent.
  • Cash and cash equivalents were R$3.931B at 30 June, with R$353M inside Braskem Idesa. The June restructuring plan showed approximately US$795M of unrestricted cash.
  • The June plan projected Q3 EBITDA of approximately US$586M and Q3 contractual debt service of US$878M, including US$572M of LC runoff. It projected approximately US$337M of unrestricted cash at 30 September under the status quo.
  • Q3 EBITDA of US$750M is a user-specified sensitivity, not a reported result. Relative to the June plan it adds US$164M of EBITDA. Depending on operational working capital, estimated September unrestricted cash after scheduled Q3 requirements is approximately US$250M to US$500M.
  • Braskem suspended payments covered by the 60-day protective injunction. After cure periods expired in July, it disclosed R$507M, or US$98M, of defaults under certain financial instruments. It did not publicly disclose acceleration as of the cutoff.
  • Public bond terms generally provide a 30-day interest cure period. Holders of at least 25% of an affected series can generally accelerate after an uncured event of default. A majority can generally rescind acceleration before judgment if overdue amounts, expenses and other defaults are cured. Cross-default terms vary by instrument.
  • The US$1.0B standby facility matures on 31 December 2026. The June plan showed US$2.349B of H2 contractual debt service, including LC runoff and the standby maturity.
  • The Brazilian court granted 60 days of protection on 26 June to support mediation. The stay is reported to expire on 24 August 2026. Chapter 15 provisional protection was also obtained in New York. The stay covers invited financial creditors in the Wind Chamber mediation. It does not stay trade, suppliers or customers.
  • The June creditor framework rejected Braskem's initial five-year extension and coupon reduction. Creditors required positive-NPV treatment, shareholder burden-sharing, cash controls, information rights and direct Petrobras participation. They expressed conditional support for a temporary plan-to-a-plan EJ with protections.
  • Q2 filings continued to describe creditor proposals as indicative and nonbinding, including possible capitalization and collateral. No signed term sheet, sufficient adhesion or committed sponsor funding was publicly disclosed for Braskem S.A. by the cutoff.
  • Braskem purchased R$5.098B of raw materials, finished goods, services and utilities from Petrobras and subsidiaries in H1 2026. Annualized flow is approximately R$10.2B, or about US$2.0B. The June parent-company payable to Petrobras was R$257M, roughly nine days of the H1 purchase run rate.
  • Q2 interim statements disclosed Braskem Idesa borrowings of about R$14.156B, or about US$2.74B, as non-recourse project debt in a separate default. Braskem's disclosed exposure included a term loan of US$180M committed / US$129M disbursed and US$82M of working-capital loans due December 2026 secured by Braskem Idesa assets.

Latest confirmed development: Braskem Idesa Chapter 11

On 18 August 2026 Braskem S.A. filed a Material Fact confirming that Braskem Idesa S.A.P.I. reached a comprehensive consensual restructuring with its major stakeholders, including Braskem S.A., Braskem Netherlands B.V., ETILENO XXI, S.A. de C.V. (the Grupo Idesa vehicle), a substantial majority of noteholders, and its term-loan lender.

Verified from the 18 August 6-K and the company announcement:

  • Senior debt at Braskem Idesa is to fall from approximately US$2.5 billion to approximately US$1.6 billion.
  • Braskem Idesa commenced prepackaged Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas. Completion is expected in approximately 60 to 90 days.
  • As part of the restructuring, Braskem, as controlling shareholder, will contribute a total of US$476 million, of which approximately US$126 million had already been made available prior to the Chapter 11 filing.
  • Upon completion, Braskem will continue to hold a majority stake. Grupo Idesa and affiliates will be the largest minority shareholder.
  • Braskem Idesa operations will continue normally and without interruption. The announcement states that unsecured creditors and trade vendors will be paid in the ordinary course.
  • Braskem described Braskem Idesa as a strategic asset.

Required inferences that agents must test, not treat as filing facts:

  • About US$350 million of the US$476 million contribution remains to be funded. Treat that remaining amount as a live use of Braskem S.A. / Braskem Netherlands liquidity unless the agent can show from public documents that it is only a restatement of the existing term loan or the US$82 million working-capital facility.
  • The term-loan lender is listed as a separate supporting party. Do not assume the existing term loan is the US$126 million already funded.
  • The Idesa estate is separate from Braskem S.A. There is no disclosed parent guarantee of the remaining approximately US$1.6 billion of Idesa senior debt, and no Braskem S.A. Chapter 11 or RJ filing.
  • Cutting Idesa senior debt does not, by itself, reduce the US$10.3 billion corporate stack, the 6.74x corporate leverage or the December standby. Consolidated IFRS gross debt may fall if the haircut is a real principal reduction. That is a consolidation-optics point, not a parent recapitalization.
  • The remaining US$350 million is a first-order claim on scarce parent cash six days before the reported 24 August stay expiry.
  • Mexico Q2 EBITDA of US$57 million at 43% utilization is not a run-rate. The remaining US$1.6 billion is underwritten on operating the plant, not on annualizing Q2.

Sources:

Latest reported development: Petrobras naphtha terms

Valor Economico reported on 17 August, citing unnamed sources, that Petrobras put commercial support on the table. The concept could extend terms on naphtha purchases currently paid in cash for as long as six months. It would not be a loan or new financial debt. Format, duration, pricing and the exposure cap remained under discussion. Petrobras, IG4 and Braskem did not comment. No 18 August filing confirmed that this concept is signed, capped or accepted by creditors.

Valor also reported:

  • The objective is to obtain one-third creditor support and file an EJ before 24 August.
  • The first filing could be a generic plan-to-a-plan EJ that provides another 90 days for negotiation.
  • Nothing was final and positions remained far apart.

The mathematical ceiling from moving approximately nine-day Petrobras terms to 180 days is roughly US$950M of incremental trade liquidity. The report says exposure will be capped, so do not assume the ceiling. Test US$250M, US$500M and US$950M caps. Do not treat supplier credit as loss-absorbing capital. If commercially priced, its subsidy value is small even though its liquidity value is substantial.

The Idesa cash contribution is relevant to this report. Agents must state whether a remaining US$350M parent cheque to Mexico makes Petrobras more or less willing to extend naphtha terms, and whether it strengthens or weakens the creditor demand for shareholder burden-sharing.

Alternatives that must be tested

  1. Consensual or plan-to-a-plan EJ with Petrobras trade credit, after the Idesa prepack.
  2. A cure-and-continue path in which Braskem pays all overdue interest before acceleration, but still must address LC runoff, the December standby maturity, and the remaining Idesa contribution.
  3. Creditor-favorable consensual restructuring with collateral, higher dilution or equitization.
  4. RJ if the stay expires, acceleration begins or liquidity support cannot be committed.

Required operating cases

  • Q3 EBITDA US$586M, the June-plan case.
  • Q3 EBITDA US$750M, with September unrestricted cash of US$250M to US$500M before any new Petrobras facility.
  • Q3 EBITDA US$1.0B, a persistent-spread upside case.

For each case, distinguish EBITDA from cash conversion. Show the remaining Idesa contribution as a use of cash, not as a source. Show whether the December standby can be paid, extended or must be included in a restructuring.

Required Mexico treatment in every package

State explicitly:

  1. Whether Idesa remains a separate estate.
  2. Whether any further parent cash, guarantee, keep-well or cross-collateralization is permitted after the disclosed US$476 million.
  3. How the existing US$82 million secured working-capital loan and the term loan are treated.
  4. Whether consolidated debt reduction is credited as parent deleveraging.
  5. Whether majority ownership of Idesa is an asset worth preserving or a cash leak to be stopped.

Required output

State:

  1. Your objective and realistic alternative if negotiations fail.
  2. Whether the Petrobras proposal satisfies shareholder burden-sharing and at what cap, price and duration, after the Idesa contribution.
  3. Whether cure-and-continue is credible after the remaining Idesa cheque.
  4. Your opening package, first concession and narrowest acceptable package.
  5. Treatment of maturity, cash/PIK interest, LC and trade facilities, Petrobras, IG4, creditor new money, warrants/equity, collateral, covenants, Mexico and Alagoas.
  6. Outcome probabilities summing to 100%.
  7. The single fact that would most change your position.