Court shields Braskem’s U.S. assets pending Chapter 15 recognition
The court granted Braskem and its affiliates immediate provisional relief while it considers recognition of the Brazilian mediation proceeding. The provisional-relief order applies the Bankruptcy Code’s automatic stay to the debtors and their U.S. property to the same extent as the Brazilian court’s initial order, and applies section 363 protections to Braskem America Finance Co.’s assets.
Creditors may notify the debtors of defaults or debt acceleration, but cannot collect, enforce or realize on those obligations in the United States. Parties retain the right to seek relief from the order, and the injunction does not restrict creditor action outside U.S. territorial jurisdiction against foreign assets. The protections remain effective until the U.S. court rules on recognition or the Brazilian mediation stay ends, whichever occurs first. The order preserves Braskem’s U.S. asset base and blocks domestic enforcement during the recognition process, while leaving creditors’ acceleration notices and non-U.S. remedies intact.