Braskem Finance Arm Faces Involuntary Chapter 11 Petition in US Bankruptcy Court
What happened
Three funds filed an involuntary Chapter 11 petition against Braskem America Finance, a finance arm of Braskem, in the US Bankruptcy Court for the Southern District of New York. The funds claim to hold about US$272 million of the unit’s 7.125% notes due in 2041. Braskem stated that the petition concerns and affects only that unit, not the parent company or other subsidiaries.
From riotimesonline.com
Why it matters
The petition comes amid Braskem's financial difficulties, which are linked to geological damage near its Maceió salt mines and a long slump in petrochemical prices. Since Braskem shares trade on the New York Stock Exchange, the filing impacts US investors.
Braskem, the largest petrochemical company in the region, faces financial difficulties due to debt, high interest rates, and a ground-collapse disaster in Latin America.
From riotimesonline.com
Who's involved
- BraskemThe subject of the involuntary Chapter 11 petition filed against its finance arm.
- Southern DistrictThe jurisdiction where the bankruptcy case was filed.
- New York Stock ExchangeThe stock exchange where Braskem shares are traded.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- BraskemSpeculative
Braskem could face increased credit risk due to the involuntary Chapter 11 petition filed against its finance arm.
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The entities involved
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Braskem
company
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Maceió
municipality of Alagoas state, Brazil
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Southern District
district of Hong Kong
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