VERACRUZ – Braskem Idesa has filed for Chapter 11 bankruptcy protection in the United States after reaching agreements with creditors and shareholders to reduce its debt by more than US$920 million.
The company said the restructuring would support continued operations and is expected to conclude within 60–90 days.
Braskem Idesa is a joint venture between Brazil-based Braskem and Mexico’s Grupo Idesa. Its product portfolio includes ethylene, high-density polyethylene and low-density polyethylene used in the production of films, coatings, laminates and selected fibre-based products for the hygiene sector.
The agreement would reduce the company’s senior debt from approximately US$2.5 billion to about US$1.6 billion. It also provides for new capital to strengthen the business during and after the court-supervised restructuring.
Braskem, the majority shareholder, will contribute US$476 million and is expected to retain majority ownership of the reorganised company. Grupo Idesa and its affiliates will become the largest minority shareholder.
Braskem Idesa said day-to-day operations would continue as normal during the proceedings. The company also stated that employee wages and benefits, trade vendors and unsecured creditors would be paid under court-approved motions.
Among Braskem’s latest developments for the nonwovens sector is a new variant of its I’m green bio-based high-density polyethylene (HDPE).
The HDPE, specifically developed for the nonwovens market, is targeted at hygiene and bi-component fibre applications such as diapers.
It is said to offer low gel levels, excellent processing stability, improved heat resistance, and great colour stability. Tests show it also performs well in both bi-component spunbond and mono-component spunbond processes, ensuring reliability in high-performance hygiene applications.
