Oct 2 (Reuters) – Controlling shareholders of Brazil’s Braskem are finalizing a counter proposal for the company’s creditors after balking at lenders’ demands to inject $3 billion into the petrochemical producer, two people familiar with the matter told Reuters on Friday.
“It would be too large an injection of funds, it is far more than the company’s current valuation,” one source said, adding that fully meeting the request in the short time would be impossible. Negotiations continue and that a counteroffer will likely be submitted within days, the source said.
Braskem’s restructuring should rely more on operational improvements than on fresh equity, a second person said, adding that while new funding has not been ruled out entirely, any decision would depend on broader negotiations and potential adjustments.
In September, creditors demanded a $3 billion capital injection from Braskem’s controlling shareholders, state-run oil firm Petrobras and private equity firm IG4 Capital, after the company issued a $10.9 billion out-of-court restructuring filing on August 24.
Braskem has until late November to come up with a final plan with support of more than half of its creditors to avoid filing for bankruptcy.
IG4 declined to comment. Petrobras and Braskem declined to comment.
Earlier this month, Petrobras Chief Executive Officer Magda Chambriard told journalists in Rio de Janeiro that the company is unwilling to increase its stake in Braskem, signaling it will not inject further capital unless matched by other investors.
Braskem is currently worth some 3.25 billion reais ($621.8 million), after the value of its shares fell by half in 2026.
Creditors consider fresh cash essential and expect shareholders to bear their share of the burden, a third source said, signaling tense negotiations ahead.
Braskem and its creditors are already at odds over fund transfers to the company’s Mexican unit, Braskem Idesa, as part of a $415 million financing package and a $71 million capital injection linked to the unit’s Chapter 11 filing, which also started in August.
In late September, a Brazilian court blocked Braskem from transferring more funds to the unit, which is a joint venture with Mexico’s Grupo Idesa [RIC:RIC:GSDC.UL].
Braskem appealed the ruling, but the matter is still pending. If overturned, resuming transfers would allow Braskem Idesa to exit Chapter 11 by November or before, a fourth source told Reuters.
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