What type of restructuring process has Braskem’s board approved, and what is its key legal designation in Brazil?

Braskem’s board approved an out-of-court restructuring process known as 'recuperacao extrajudicial' in Brazil—a proceeding that provides limited protection against creditor actions while the company negotiates the restructuring of its $10.9 billion in unsecured financial obligations.

How does Braskem’s chosen restructuring differ from a court-supervised process in Brazil, and what protections does it offer?

Braskem’s out-of-court restructuring (recuperacao extrajudicial) is quicker and less onerous than the court-supervised 'recuperacao judicial'; however, it offers only limited financial protection—it does not cover obligations to suppliers and customers, which remain fully enforceable and will be fulfilled as usual by Braskem.

Braskem to file for out-of-court restructuring in Brazil

Aug 24, 2026

Braskem approved an out-of-court restructuring plan for $10.9 billion in unsecured debt while maintaining supplier obligations, complemented by a US Chapter 15 filing to secure creditor protection for its major plastic and chemical production.

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