We could say all hell broke loose when Braskem announced on Friday morning (26 September) that it had hired financial (Lazard) and legal (Cleary Gottlieb Steen & Hamilton and Munhoz Advogados) “ to support the Company in preparing a diagnosis of economic-financial alternatives to optimize its capital structure” (or maybe to prepare the ground for an in-court or out-of-court debt restructuring process?). Most international bonds, excluding the subordinated 2081, trade in the high 30s, with only the 2028s trading in the low 40s. However, someone seemed to have known something, as there was a significant sell-off on the 24th (see Table 1).

We would like to provide a high-level overview of the operations and asset quality.