BRAZIL · BUSINESS
Key Facts
- —What is happening Three funds, FFI Fund, FYI and Olifant Fund, filed an involuntary Chapter 11 petition against Braskem America Finance in a New York bankruptcy court on Wednesday, 21 October.
- —Why it matters Braskem, one of Latin America’s largest petrochemical producers and an NYSE-listed company, is already restructuring about US$10.9 billion of debt in Brazil, and the petition opens a second legal front in the United States.
- —The numbers The petitioners hold about US$272 million, roughly 47%, of the 7.125% notes due in 2041, which total about US$589 million in principal.
- —Who is who Braskem America Finance is an indirect Braskem subsidiary that raises money abroad. The petitioners are linked to Bracebridge Capital, a US investment manager, though that link is not yet confirmed.
- —What to watch Whether Braskem America Finance consents or contests the petition, which it normally has 21 days from service to answer, and whether Braskem’s talks with bondholders produce a deal by late November.
- —Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- —What it means for you Holders of Braskem’s NYSE shares (ticker BAK) and of its dollar bonds face added legal risk, though Braskem says the petition touches only the financing unit and its US$589 million of notes.
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Implied chance of winning Brazil’s presidency on 25 October, from traders’ prices.
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Flávio Bolsonaro 78.8% · Lula 21.5% (US$191 million traded)
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Flávio Bolsonaro 79% · Lula 22%
As of 22 October, 3:00 am ET (08:00 Lisbon), updated every 20 minutes. Prices are bets, not polls, and can move fast.
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Three funds holding US$272 million of a Braskem bond asked a New York court for an involuntary Chapter 11 case. Braskem says the petition names only its finance unit.
Three funds filed an involuntary Chapter 11 petition on Wednesday, 21 October, against Braskem America Finance, a finance arm of Brazil’s Braskem. Braskem told investors the same day that the case sits in the US Bankruptcy Court for the Southern District of New York.
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Runoff poll average: Flávio Bolsonaro 51.1%, Lula 48.9%
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The funds say they hold about US$272 million of the unit’s 7.125% notes due in 2041. That matters to US investors because Braskem shares trade on the New York Stock Exchange under the ticker BAK.
What the Chapter 11 Petition Says
Braskem named the petitioners in a notice to the market on 21 October. They are FFI Fund Ltd., FYI Ltd. and Olifant Fund Ltd., holding about US$272 million, roughly 47% of the notes.
The 2041 notes total about US$589 million in principal and are guaranteed by Braskem S.A., the Brazilian parent. They are the only debt of Braskem America Finance, the company’s notice says.
Braskem stresses that the petition concerns and affects only that unit. It says the parent and its other subsidiaries, including those in the Brazilian and US Chapter 15 cases, are not debtors.
InvestNews reports funds linked to US manager Bracebridge Capital allege that Braskem is not paying debts when due. Atlas Público attributes the Bracebridge link to the outlet Briefs, and Braskem’s notice does not name it.
How Braskem Reached This Point
Braskem has struggled for years, after costs from geological damage near its Maceió salt mines and a long slump in petrochemical prices. In August it sought an extrajudicial recovery, a court-backed deal with creditors, in São Paulo for about US$10.9 billion of debt.
That filing came on Monday, 24 August, and gave the company 90 days of protection from certain collection actions. Creditors holding 39.6% of the affected claims had already joined the plan, Brazilian outlet BP Money reported.
Atlas Público reported that on Tuesday, 18 August, Braskem announced a US Chapter 11 case for its Mexican joint venture Braskem Idesa. The Brazilian and US tracks have since run side by side.
Early in October, bondholders rejected a plan under which shareholders would back about US$1 billion of new equity, InvestNews reported. The offer depended on the company first cutting its debt by a large amount.
Bondholders had pressed Petrobras and IG4 Capital, the controlling shareholders, for far more new money, Times Brasil reported on 20 September. Petrobras is Brazil’s state-controlled oil company, and IG4 is a Brazilian investment firm.
Braskem has since been preparing a new offer, Times Brasil reported on 17 October, with no deal announced. Meanwhile the 2041 noteholders have opened a US court front of their own.
Live Company IntelligenceBraskem S.A — the full investor dossierInside: live share price, market cap, three-year financials, valuation, ESG and peer benchmarks — plus the latest Rio Times coverage.
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◆ Live Company Intelligence
Braskem
SA: BRKM5BRKM5Basic MaterialsChemicals8,233 employees
R$3.32B
Market cap
Valuation & profitability
Market capR$3.32B
Revenue (TTM)R$70.60B
Profit margin-7.9%
Return on equity-548.8%
Price & risk
52-wk low
$3.5252-wk high
$13.78
Beta (volatility)0.67
200-day average$7.90
Revenue trend · 6y
20202025
Latest R$70.72B
Ownership
Institutions8.0%
Shares outstanding345M
Dividend
No regular dividend — earnings reinvested for growth.
What Braskem does. Braskem S.A., together with its subsidiaries, engages in the manufacture, sale, import, and export of chemicals, petrochemicals, and fuels in Brazil. The company supplies electricity and other inputs to second-generation producers; sells utilities, such as steam, water, compressed air and industrial gases; industrial services; and engages in the production, supply, and sale…
How an Involuntary Chapter 11 Works
Chapter 11 is the US law for reorganising a business under court supervision. An involuntary case is started by creditors rather than by the company, according to the federal courts’ own guide to bankruptcy basics.
If a debtor has 12 or more creditors, at least three must sign the petition, under section 303 of the Bankruptcy Code. Here three funds signed.
The court orders relief only if the debtor is generally not paying its debts as they become due, the same section says. A debtor can contest the petition, and the bankruptcy rules give it 21 days after the summons is served.
Until a judge orders relief, there is no reorganisation case. The petition is a creditor’s claim, not a ruling.
What It Means for US Readers
Braskem shares trade in New York as American depositary receipts under the ticker BAK. US holders therefore own part of a company now facing two legal fronts.
US bond funds that hold Braskem paper face a test of how far a Brazilian restructuring can shield a US-registered financing unit. The 2041 notes carry a Braskem guarantee, so the parent’s own position is closely tied to the outcome.
Background is in earlier reports on the extrajudicial filing, the Braskem Idesa Chapter 11 and the bondholder rejection. See also creditors’ US$3 billion demand, the counterproposal talks, the Braskem company profile and the Brazil hub.
What Is Not Known
It is not known whether Braskem America Finance will consent to the case or contest it. The sources name no hearing date or judge, and the case number was not confirmed; the Bracebridge link rests on press reports.
Reports differ on the filing date and bond total. Braskem’s notice says 21 October and US$589 million, while one site says 20 October and others cite US$587 million.
Braskem has not said how the petition affects its talks with bondholders or its out-of-court plan. The share price reaction was also not confirmed.
What Comes Next
Braskem America Finance has about 21 days from service of the summons to answer. A judge would then decide whether to order relief, a separate step from the filing.
Braskem’s 90-day protection period in São Paulo runs from 24 August. Reports say a final plan backed by most creditors is due by the end of November.
Frequently Asked Questions
What did the funds file against Braskem?
Three funds filed an involuntary Chapter 11 petition on 21 October against Braskem America Finance, an indirect Braskem subsidiary. It was filed in the US Bankruptcy Court for the Southern District of New York.
How much debt is involved?
Braskem America Finance has about US$589 million of 7.125% notes due in 2041. The three funds say they hold about US$272 million, or 47%, of them.
Is Braskem itself in Chapter 11?
No, Braskem says the petition names only Braskem America Finance. The parent and its other subsidiaries are not listed as debtors.
What is an involuntary Chapter 11 petition?
It is a reorganisation case started by creditors instead of the company. The debtor can contest it, and the court orders relief only if the legal test is met.
Can US investors still trade Braskem shares?
Braskem shares trade in New York under the ticker BAK, and the notice announces no trading halt. Investors should check their broker for any change.
Sources: Braskem S.A., market notice filed with CVM, 21 October; Atlas Público, 21 October; InvestNews, 21 October; BP Money, 24 August; Atlas Público, 18 August; Times Brasil, 17 October; Times Brasil, 20 September; Brazil Stock Guide; 11 U.S. Code section 303; Federal Rule of Bankruptcy Procedure 1011; US Courts, Chapter 11 basics (all accessed 22 October 2026).