Braskem Provides Update on Extrajudicial Reorganization Negotiations with Noteholders

Extrajudicial Reorganization: Braskem and certain subsidiaries filed for out-of-court reorganization; Signatory Creditors representing 39.6% (now 40.3%) of financial debt have adhered to the EJ Plan.

Braskem Proposal (10/23): Proposes upfront debt-to-equity conversion of approximately $2.8 billion (29% of electing claims), secured takeback debt of up to $6.8 billion (71%), and an Equity Rights Offering of $2.25 billion with $1.2 billion backstopped by Main Shareholders; includes contingent equity contribution of up to $0.5 billion in June 2029.

Investor Proposal (10/24): Proposes debt-to-equity conversion of $1.85 billion, secured takeback debt of approximately $7.3 billion, and full $1.85 billion backstop for the Equity Rights Offering; excludes contingent equity contribution and deferred equity disbursement.

Claim Treatment: Default Option proposes new 2060 1% PIK takeback debt; Option A addresses L/C providers with $200 million new L/C availability; Option B offers secured takeback debt plus equity conversion with 125bps interest rate increase and 100% PIK toggle for 3 years; Option C provides additional secured takeback debt.

Financial Projections: The cleansing materials include annual P&L projections through 2035 showing 2026E net revenue of $14.2 billion, EBITDA of $1.5 billion (10.3% margin), and EBIT of $804 million (5.7% margin), with projections explicitly not constituting guidance.

Cash Flow Standstill: Monthly cash flow (August-November 2026) assumes no payment of debt service and no payment of letters of credit, with unrestricted cash balance projected at $981 million by November 2026.

Braskem disclosed that it provided non-public information to Senior Notes and Debentures holders regarding an update to the Extrajudicial Reorganization Plan, including updated business plan, cash flow projections, Braskem Proposal (10/23), and Investor Proposal (10/24). Signatory Creditors now represent 40.3% of financial debt, up from 39.6%. The milestone deadline under Clause 1.1(iv) of the Negotiation Framework has been extended to October 30, 2026.

Braskem Proposal (10/23) proposes $2.25 billion Equity Rights Offering with $1.2 billion backstop, $2.8 billion upfront debt-to-equity conversion, secured takeback debt up to $6.8 billion with 125bps interest increase and 100% PIK toggle for 3 years, and contingent equity contribution of up to $0.5 billion in June 2029. Investor Proposal (10/24) proposes $1.85 billion backstop, $1.85 billion debt-to-equity conversion at R$2.00/share, approximately $7.3 billion secured takeback debt with weighted average rate inc...

The cleansing materials contain annual P&L projections through 2035 (2026E: net revenue $14.2 billion, EBITDA $1.5 billion/10.3%, EBIT $804 million/5.7%; 2035E: net revenue $18.0 billion, EBITDA $2.8 billion/15.3%, EBIT $2.1 billion/11.6%) and monthly cash flow projections (August-November 2026) showing unrestricted cash declining from $869 million to $981 million. Company explicitly states these projections should not be considered guidance and are hypothetical data subject to material uncertainty.