Why is Braskem moving toward judicial reorganization?

Braskem is moving toward judicial reorganization because its debt restructuring talks with creditors have failed again, specifically failing to secure the required approval from one-third of its creditors for a plan to address its R$50 billion debt; a group of secondary-market bondholders is demanding unfeasible terms—including new secured financing and capital injections from main shareholders—which Braskem and its major shareholders reject, and with interim court protection expiring, those shareholders are now consenting to judicial restructuring after the out-of-court proposal was rejected.

What key condition must Braskem meet to avoid judicial reorganization, and why has it not been met?

Braskem must obtain approval from one-third of its creditors for an out-of-court restructuring plan to avoid judicial reorganization; this condition has not been met because a group of bondholders who purchased bonds in the secondary market is insisting on terms—such as new secured financing and capital injections from main shareholders—that Braskem and its main shareholders consider unfeasible, leading to the rejection of the out-of-court proposal and the expiration of interim court protection.

Braskem Moves Closer to Judicial Reorganization as Debt Talks Fail Again

Jul 30, 2026

Braskem approaches judicial reorganization after failing to negotiate terms for its R$50 billion debt. Shareholders consent to restructuring as bondholders demand new financing while interim court protection expires.

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