As of October 11, 2026, Braskem Idesa had a confirmed Chapter 11 plan, but a Brazilian injunction remained an obstacle to exit funding from Braskem S.A. In a statement filed that day, the debtors reported that a Brazilian appellate court had declined to stay restrictions preventing Braskem S.A. from providing exit capital and entering into certain agreements needed to close the restructuring. The appeal’s merits remained unresolved. Debtors’ October 11 statement, paragraphs 2–5
The U.S. Bankruptcy Court for the Southern District of Texas approved the disclosure statement and confirmed the prepackaged plan on September 24, 2026. The debtors’ subsequent statement described continued efforts toward closing the restructuring transactions. Confirmation order, page 1Debtors’ October 11 statement, paragraph 5
The Brazilian injunction restricts the parent’s participation
According to the debtors’ October 11 statement, the Brazilian court issued its injunction on September 24. The debtors explained that the order applies to entities in Braskem S.A.’s Brazilian bankruptcy proceedings and does not purport to bind Braskem Idesa itself. While the injunction remains in effect, however, Braskem S.A. is barred from providing exit capital to Braskem Idesa and entering into certain agreements necessary to consummate the confirmed plan without Brazilian court authorization. Debtors’ October 11 statement, paragraphs 1–2
Braskem S.A. appealed and sought a stay of the injunction pending resolution of the appeal. On October 9, the Court of Justice of the State of São Paulo’s Second Reserved Chamber of Business Law denied that interim request. The debtors described the decision as preceding a final determination on the appeal’s merits. The denial therefore left the injunction in effect while the merits remained pending. Debtors’ October 11 statement, paragraph 3
Operating background
In his first-day declaration, financial advisor Ryan Omohundro described Braskem Idesa as the primary supplier of polyethylene to the Mexican market. He reported that the debtors commenced Chapter 11 to restructure a consolidated balance sheet burdened by approximately $3.6 billion in outstanding debt. First-day declaration, paragraphs 6–7
Chapter11Cases’ account of the filing describes the company’s petrochemical complex in Veracruz and identifies ethane as its largest cost line and an essential production input. The account reports shortfalls in Pemex deliveries and the company’s pursuit of alternative supply arrangements. It also reports that the ethane import terminal was running and that the earlier overland import operations had concluded. Chapter11Cases, company background and alternative supply arrangements
Efforts to obtain Brazilian authorization continue
The injunction allows Braskem S.A. to submit additional information to the Brazilian court in support of a request to authorize the restructuring transactions. In their October 11 filing, the debtors said they understood from Braskem S.A.’s Brazilian counsel that further information would be submitted to the court that issued the injunction, in parallel with the appeal, to seek authorization for Braskem S.A. to fulfill its plan obligations. Debtors’ October 11 statement, paragraphs 2 and 4
The debtors stated that they would continue working toward a closing consistent with all parties’ applicable legal obligations. At that filing’s cutoff, the confirmed U.S. restructuring still faced restrictions on the parent’s exit capital and participation in certain closing agreements, with the appellate merits decision pending. Debtors’ October 11 statement, paragraphs 2–5
Sources
Debtors’ October 11 statement, paragraphs 2–5 /documents/3280b3c7-f564-4e51-b264-7308cbbca7d4/
Chapter11Cases, company background and alternative supply arrangements https://chapter11cases.com/blogs/news/braskem-idesa-prepackaged-chapter-11-in-houston
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