News Code : 43053

Petrotahlil - Brazilian petrochemical producer Braskem does not expect any impact on its relations with stakeholder Odebrecht SA after the latter filed for bankruptcy protection Monday.

In a late Tuesday email to Platts, Braskem said there would be no impact on its relationship or requirements due to the "request for judicial reorganization of Odebrecht SA and other companies of the Odebrecht Group (ODB), including the company's direct parent company, OSP Investimentos SA."

Braskem was informed by ODB that there would be no change in Braskem's shareholding control, it said.

Braskem added that it has no relevant amounts receivable from ODB and that the bankruptcy filing does not entail early maturity of its debts.

"Braskem remains focused on conducting its business and generating value for all its shareholders and other stakeholders," it concluded.

On Monday, Brazilian construction conglomerate Odebrecht filed for bankruptcy protection. The target is to restructure $13 billion in debt.

Odebrecht did not respond to a request for comment.

Petrochemicals market participants were apprehensive after the filing came to light, saying it could generate opportunities for imports and Brazilian price volatility if Braskem's operations were to be affected.

"After LyondellBasell quit negotiations on Braskem, the market was asking what could happen. Now it seems that Odebrecht needs that sale to happen and will continue to look for it," one said.

After months of negotiations between LyondellBasell and Odebrecht, the global petrochemicals giant decided in early June to end talks about buy the latter company's 38.3% share in Braskem in a deal that market participants said could reach a value of $11 billion.

Braskem's failure to file an annual report with the US Securities and Exchange Commission on time and uncertainty about the extension of a naphtha supply contract with Braskem co-owner Petrobras were among issues seen to be holding up a deal, according to market participants.

 

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