Braskem has nine days to avoid a court process. Its creditors are not aligned.

Braskem faces an approximately $100 million coupon payment on its international bonds in July, and the out-of-court restructuring talks have hit a wall over creditor treatment: some lender groups are objecting to what they see as preferential collateral packages offered to others, which is the specific condition that turns 'voluntary' restructurings into contested court proceedings. The company is rated CC by Fitch and Caa3 by Moody's, carries roughly $9.4 billion in gross debt, and is asking creditors for extended maturities and lower rates with no new equity, no debt-for-equity swap, and no major asset sales. IG4 Capital took control via a debt-for-equity deal in April; Petrobras holds 47% of voting rights. One person involved in the talks said the problem cannot be solved in less than five years, which is a long ask when you are offering creditors patient, low-coupon paper against distressed risk. Creditors holding out for better collateral terms have more leverage if the July payment triggers a formal default process.