Braskem taps entire $1B credit line amid debt review - Bloomberg

[Braskem factory in Bahia]
Joa_Souza/iStock Unreleased via Getty Images

Braskem (NYSE:BAK [https://seekingalpha.com/symbol/BAK]) has tapped its entire $1 billion credit facility amid a downturn in Brazil's chemical industry and mounting investor concerns over the troubled company, Bloomberg reported Friday.

The unsecured facility with a syndicate of banks is due to expire late next year, and the company has been in talks to renew the line, trying to avoid having to include collateral, according to the report [https://www.bloomberg.com/news/articles/2025-10-03/braskem-pulls-from-1-billion-credit-facility-amid-debt-review].

Braskem (NYSE:BAK [https://seekingalpha.com/symbol/BAK]) took investors by surprise last week [https://seekingalpha.com/news/4499640-braskem-plunges-after-hiring-advisors-in-bid-to-boost-finances] when it disclosed that it hired advisors to help prepare a "diagnosis of economic and financial alternatives to optimize its capital structure," which was interpreted as a signal that a debt restructuring was on the way.

Petrobras' (PBR [https://seekingalpha.com/symbol/PBR]) board has begun strategizing how to position itself if Braskem (BAK [https://seekingalpha.com/symbol/BAK]) is restructured, including potentially injecting capital into the company, Bloomberg reported earlier this week [https://www.bloomberg.com/news/articles/2025-10-01/petrobras-escalates-chemical-giant-braskem-s-crisis-to-board]; Braskem is controlled by Petrobras and Novono.

MORE ON BRASKEM

* Braskem Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4814123-braskem-s-a-2025-q2-results-earnings-call-presentation]
* Braskem: On The Edge [https://seekingalpha.com/article/4810826-braskem-stock-risk-reward-unattractive-now]
* Seeking Alpha’s Quant Rating on Braskem [https://seekingalpha.com/symbol/BAK/ratings/quant-ratings]