RUN 4 · 18 AUG 2026 EVENING

No new shareholder money, and Elliott still says no

This rerun assumes Petrobras and IG4 will not inject capital, and that Elliott / Contrarian will not back a filing unless Petrobras promises extra cash if Braskem misses financial tests. The original mediator memo and the later editorial review are both saved.

What this run expects next

TermRun 4 result
Next stepPlaceholder out-of-court filing next week if more than one-third of each group can be shown. The actual deal terms stay open.
Extra years, if a finished plan is later approvedFive extra years on the standby facility and near-dated debt
Cash interest for two years4% paid in cash. The rest of the contractual interest is added to the amount owed, so the debt grows.
Coupon after those two yearsToday’s weighted coupon plus 1.50 to 2.00 percentage points. No cut to principal at the start.
PetrobrasLater payment terms on naphtha, still unsigned; about US$500 million; no equity, no backstop, no guarantee
IG4 / Shine IUS$0 from the fund; the Idesa US$476 million is Braskem’s own cash
Elliott / ContrarianWill not support a filing unless Petrobras promises extra cash if tests are missed; other bondholders may still make a filing possible
Warrants, if a finished plan is later approved17.5%, rising to 25% if cash, liquidity, interest or extra Mexico cash tests are missed. None in next week’s filing.
MexicoSeparate Texas case; parent cash capped at the disclosed US$476 million
FitchRD now; D if the company files out of court or in court

Current outcome view

38%Placeholder filing
14%Finished deal
3%Pay the arrears
6%Equity swap
39%Court case

No third-quarter result is assumed. The remaining Idesa cash of about US$350 million is money the parent still has to spend. The old 15% warrant deal that needed a US$300 million IG4 cheque is retired. If nothing is filed by 24 August, a court case is 75%.

Publication review

The raw mediator used 34% for a placeholder filing and 44% for a court case. The published view raises the filing to 38% because the company is preparing to file next week and longer-term bondholders may still supply the one-third, and assigns 39% to a court case. IG4 cash is not put back in. Warrants in a finished deal stay at 17.5%, rising to 25%.