Mexican petrochemical firm Braskem Idesa, a joint venture between Brazil’s Braskem and Mexico’s Grupo Idesa, filed for Chapter 11 bankruptcy in a U.S. court on Tuesday. The filing follows agreements with creditors and shareholders to trim more than $920 million of debt.

Debt reduction plan

The restructuring plan calls for fresh capital to be raised and senior debt to be cut from roughly $2.5 billion to about $1.6 billion. Braskem, the majority shareholder, will contribute $476 million and will retain a controlling stake in the reorganized company. Grupo Idesa and its affiliates will become the largest minority shareholders.

Operations continue

Braskem Idesa said day‑to‑day operations will continue unchanged during the bankruptcy process. Employee wages, benefits, trade vendors and unsecured creditors are slated to be paid under court‑approved motions.

Timeline

The company expects to emerge from Chapter 11 within 60 to 90 days, allowing it to focus on its core petrochemical businesses while carrying a lighter debt load.

Broader context

Brazil’s Braskem, which holds the majority stake, is also confronting over $10 billion of its own debt and is in advanced talks for an out‑of‑court restructuring that could be filed soon, according to Reuters.

This filing highlights how multinational petrochemical firms are using U.S. bankruptcy protections to manage debt and preserve operations across borders.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.