Braskem Idesa, Braskem’s Mexican Unit, Files US Chapter 11 to Cut US$920 Million in Debt
Braskem Idesa, the Mexican petrochemical venture controlled by Brazil's Braskem, filed US Chapter 11 to erase more than US$920 million in debt, backed by up to US$476 million from its parent. The post Braskem Idesa, Braskem’s Mexican Unit, Files US Chapter 11 to Cut US$920 Million in Debt appeared first on The Rio Times .
Braskem's Mexican subsidiary, Braskem Idesa, has filed for US Chapter 11 bankruptcy protection in an effort to restructure its US$2.5 billion of senior debt. The company, which is 75% owned by Brazil's Braskem SA and the remaining quarter by Mexico's Grupo Idesa, has been grappling with a debt crisis that culminated in missed interest payments on its US$900 million notes maturing in 2029.
This triggered downgrade to default ratings by Fitch and S&P. The prepackaged Chapter 11 filing, which was already agreed upon with creditors, aims to slash the debt by more than US$920 million, reducing it to roughly US$1.6 billion. Meanwhile, the Veracruz plant will continue operations as the court-supervised restructuring takes place.
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