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Braskem Idesa Proposes Debt Restructuring; No Deal Reached Yet
January 19, 2026
Braskem Idesa has proposed a comprehensive debt restructuring to address a deepening liquidity and leverage crisis, but no agreement has been reached with creditors. The proposal seeks up to $700mn in new liquidity, combining a $300mn shareholder-backstopped revolving credit facility and up to $400mn in equity to fund a bond tender. Bondholders holding about $2.1bn of its secured notes due in 2029 and 2032 can either exchange into new 7Y secured notes at par (with interest largely deferred for five years) or cash out at 55 cents on the dollar, subject to caps. The restructuring would cut debt to about $1.6bn (ex-liquidity facility) and lower annual cash interest. Braskem Idesa’s distress stems from a prolonged petrochemical downturn, compressed margins, and chronic ethane supply constraints which drove utilization down to 57% and pushed EBITDA negative in 2025. Its management warns that fundamentals are unlikely to recover meaningfully in the near term, making a long-term solution essential. In November 2025, the company had missed the coupon payment on its dollar bonds. An ad hoc bondholder group has countered Braskem with a $900mn new-money package featuring a higher coupon on its first and second-lien notes and tighter controls, which the company has rejected. Talks till date have not arrived at a conclusion, with Braskem Idesa still facing large maturities from 2026–2032.
Its 7.45% 2029s was trading stable at 67.8 cents on the dollar, yielding 18.8%.
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