Braskem Reports Heavy Loss and Seeks Debt Agreement

Braskem reported financial losses exceeding one billion reais in the third quarter. This negative result contrasts with the profit achieved in the previous period. Net revenue and operating profit measured by Ebitda showed growth on the same basis of comparison. Adverse financial results and liability pressures weighed heavily on the company's accounts.

The petrochemical firm faces million-real disputes with creditors and shareholders regarding its restructuring plan. Proposals on the table involve capital injections and the conversion of debt into equity. There is a valuation gap between the capitalization sought by management and the amount accepted by bondholders. Petrobras and other shareholders are participating in discussions to avoid the company's renationalization.

The company's financial leverage ended the period at high levels due to accounting reclassifications. Net adjusted debt rose, driven by changes in letters of credit. Operational cash generation was boosted by the use of commercial limits and inventory.

The company must negotiate terms with bondholders, banks, and debenture holders. The deadline is approaching for presenting a consensual solution for the capital structure. Management is evaluating appropriate measures should an agreement fail to progress within the stipulated timeframe.

This corporate instability in a major national company raises perceived risk on the stock exchange and may trigger volatility in local assets. High uncertainty regarding the resolution of large corporate debts affects market confidence in the country's economy.