Braskem approves $10.9bn debt restructuring

Brazilian petrochemical company Braskem said on Monday that its board had approved a court-supervised plan to restructure $10.9 billion in debt as it deals with financial difficulties.

Braskem said the plan was agreed with creditors and would not affect its obligations to suppliers, customers and other stakeholders.

The company is 47.03% owned by state-run oil company Petrobras and 50.11% owned by an IG4 Capital investment fund.

Last week, Braskem's Mexican subsidiary, Braskem Idesa, filed for Chapter 11 bankruptcy protection in the United States after reaching a debt restructuring agreement with creditors.

Braskem posted a loss of nearly $2 billion last year. Its finances have also been affected by compensation payments linked to damage in Maceio, in northeastern Brazil, where the company's long-running salt mining operations created underground cavities and caused ground deformation. Entire neighborhoods were damaged and tens of thousands of residents had to leave their homes.