Braskem (NYSE: BAK) and creditors remain apart on restructuring, milestone extended to Oct. 30

What happened

Braskem S.A. (NYSE: BAK) said on Oct. 24 that no proposal in its restructuring talks with creditors has been accepted.

The company and some subsidiaries filed an out-of-court reorganization request on Aug. 24. Braskem sent updated commercial terms on Oct. 23, and the investor group sent its own on Oct. 24. Several in-person meetings among Braskem, its main shareholders and the investors have not produced a deal.

Braskem released the materials under confidentiality agreements signed in September with holders of its senior notes and debentures. They include a business plan delivered Aug. 31 and cash flow projections delivered Sept. 30. Creditors that signed onto the plan hold 39.6% of the financial debt it covers.

Key numbers

Metric Latest Change Source
Debt held by signatory creditors under the EJ Plan 39.6% SEC 6-K
Negotiation milestone (extended) Oct. 30, 2026 SEC 6-K
2026E EBITDA, status quo case (2025 actual in prior column) $1.46 billion from $508 million SEC 6-K
2027E EBITDA, status quo case $1.10 billion SEC 6-K
Unrestricted cash balance, end of 2027E, status quo case -$3.17 billion SEC 6-K
Annual excess cash sweep threshold in draft terms $1.0 billion SEC 6-K

Read more: Braskem (BAK) stock analysis and investment case

Why it matters

The business plan shows how much repair the company needs. Its status quo case assumes debt is paid as currently contracted. It has EBITDA of $508 million in 2025, an estimated $1.46 billion in 2026 and $1.10 billion in 2027, before a rise to $2.76 billion in 2035.

Cash is the pressure point. The unrestricted cash balance falls to negative $3.17 billion at the end of 2027 and stays negative through 2035.

Draft terms in the materials include an annual sweep of all cash above $1.0 billion, not counting proceeds from an equity rights offering. They also list a $1.85 billion amount. Any nominal debt reduction from an Option C election would cut it, and the reduction would move to Secured Takeback Debt.

OptimistFi has argued that Braskem is a high-risk cyclical recovery and balance-sheet repair story. The plan's rising EBITDA supports the recovery half. The lack of agreement leaves the repair half open. Braskem says the projections are hypothetical, are not guidance and were prepared for the reorganization.

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What's next

The milestone in the Negotiation Framework was extended to Oct. 30. Braskem expects to keep negotiating with the investors and its other financial creditors. It says it will update the market on material developments.

An agreed update to the plan by that date would turn draft terms into accepted ones. Talks without agreement would leave the debt questions open.

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.