Braskem considers out-of-court recovery request to restructure debts

The petrochemical company Braskem is in advanced discussions regarding a potential out-of-court recovery request, which could be filed as early as this month. This move is seen as an attempt to restructure over $10 billion in debts accumulated from its operations in Brazil, the United States, and Europe.

According to information shared with Reuters, two sources familiar with the negotiations confirmed that the measure is under discussion and could be implemented quickly if necessary.

Out-of-court recovery is a mechanism that allows indebted companies to restructure their financial obligations without the need for judicial proceedings.

Braskem, which already faces financial difficulties, has seen its operations affected by various factors, including a volatile market and challenging economic circumstances.

With the assessment of these steps, Braskem seeks a solution to manage its debt, which stands at nearly 51 billion reais, equivalent to over $10 billion, as reported.