Petrobras rules out increasing Braskem stake unless all shareholders contribute proportionally to restructuring

Petrobras CEO Magda Chambriard stated during the biannual ROG.e petroleum conference in Rio de Janeiro that the state-controlled oil company will not increase its 36.1% total equity stake or 47% voting stake in petrochemical producer Braskem unless other investors match any capital injection proportionally. The position directly challenges creditor demands that Petrobras and co-controlling shareholder IG4 Capital Group commit $3 billion in fresh capital to unlock restructuring of Braskem’s $11 billion debt burden.

Chambriard emphasized that expanding Petrobras’ ownership “is not on our horizon,” explicitly ruling out scenarios where the state company would inject capital alone or issue subordinated debt without corresponding contributions from other shareholders. The statement comes as Braskem races to finalize preliminary restructuring terms by October 9, with a final plan deadline of late November if the company succeeds in avoiding bankruptcy proceedings.

Creditors including Elliott Investment Management and Contrarian Capital Management have rejected Braskem’s original restructuring proposal, which sought $2 billion from lenders—$1.25 billion to repurchase existing liabilities at up to 50% of face value and $750 million for working capital. Instead, creditors are demanding the $3 billion commitment from controlling shareholders while stating they will not add additional funds themselves. Sources familiar with the negotiations indicated creditors view Braskem’s plan, which includes flexibility for capital increases, with skepticism.

Petrobras board member William França, who sits on Braskem’s board of directors, said the company expects to reach an agreement that avoids bankruptcy. The current governance structure assigns Petrobras responsibility for operational management while IG4 handles corporate and financial oversight, an arrangement Chambriard said “is already delivering results.”

The political sensitivity of assuming Braskem’s liabilities on Petrobras’ balance sheet ahead of October presidential elections has complicated negotiations. A São Paulo court this week granted creditor requests to block Braskem from transferring resources to its Mexican subsidiary Idesa, which filed for bankruptcy protection in the United States. Braskem posted net losses of 9.879 billion reais in 2025 on revenues of 82.09 billion reais, with fourth-quarter losses alone reaching 10.284 billion reais. The company’s ability to finalize a consensual restructuring depends on bridging the gap between creditor demands for shareholder capital commitments and Petrobras’ insistence on proportional contributions from all parties.