Braskem Debt Talks Hit Snag, Boosting Odds of Emergency Order

Braskem SA and its new controlling shareholder, IG4 Capital, are struggling to win support from enough creditors to move forward with an out-of-court restructuring proposal amid disagreements over uneven treatment and collaterals, according to people familiar with the matter.

The petrochemical company has so far been unable to secure backing from enough creditors to meet the legal threshold for the so-called extrajudicial recovery, which it planned to seek by July, the people said, asking not to be named discussing private details. A failure to reach an agreement would increase the odds of an emergency court protection against creditors, they added. ...