Braskem Discloses Competing Restructuring Term Sheets as October 30 Deadline Looms
BAK is trading near its 52-week low of $1.4 (18% below the low).
Summary
Braskem released the competing restructuring term sheets from itself (Oct 23) and its creditor group (Oct 24), confirming no agreement has been reached and that the key milestone now expires October 30, 2026.
Key Events · Legal and Risk Events · BAK
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Competing Term Sheets Disclosed, No Deal
Braskem published its October 23 proposal and the investors' October 24 counterproposal; neither has been accepted, and the parties have not reached agreement on restructuring terms.
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Equity Raise Size and Price Diverge
Braskem proposes a US$2.25 billion equity rights offering with US$1.2 billion backstopped at a 20% discount to market; the investors want US$1.85 billion backstopped at R$1.60 per share, a 20% discount to their R$2.00 debt conversion price.
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Debt Conversion Gap Remains Wide
Braskem proposes US$2.8 billion of upfront debt-to-equity conversion versus the investors' US$1.85 billion, with the investors adding US$450 million of convertible takeback debt at R$2.00 per share.
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October 30 Milestone Deadline
The Clause 1.1(iv) milestone under the Negotiation Framework has been extended to October 30, 2026, leaving only days to reach agreement with the requisite creditor majority.
Analysis · BAK · Industrial Applications And Services
The two sides in Braskem's restructuring remain far apart on the two variables that determine equity value: how much new money comes in and at what price. This filing publishes the actual term sheets exchanged with the creditor group — Braskem's own October 23 proposal and the investors' October 24 counter — and confirms neither has been accepted. Braskem wants a US$2.25 billion equity rights offering with only US$1.2 billion backstopped and priced at a 20% discount to market; the creditors want US$1.85 billion backstopped and priced at R$1.60 per share, roughly a 20% discount to their proposed R$2.00 debt conversion price. The creditors also seek a smaller upfront debt-to-equity conversion (US$1.85 billion versus Braskem's US$2.8 billion) and a tighter US$450 million convertible takeback. With the Clause 1.1(iv) milestone now extended only to October 30, 2026, a hard deadline is days away and no agreement is in hand. The attached business plan shows unrestricted cash balances deeply negative through 2035 under the status quo, which is why a deal is not optional.
How filings like this one have moved
In the 30 days to Oct 26, 2026, 45.6% of the 241 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.73%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BAK was trading at $1.15 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $666M. The 52-week trading range was $1.40 to $5.40. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.