After a confidentiality period ended without an agreement, Braskem-Idesa (BAKIDE) released cleansing materials related to the restructuring negotiations with its bondholders this week.

The Mexican petrochemical company presented a restructuring proposal to the ad hoc bondholder group at a meeting on 18 December 2025. After rejecting it, the group submitted a counterproposal on 6 January, but the joint venture between Brazil’s Braskem and Mexico’s Grupo Idesa did not agree to its terms.

Therefore, if they want to reach an agreement – which we consider the most likely outcome – both parties will have to make some concessions. Whether those will be bigger or smaller for each side will eventually depend on where on the spectrum the final terms land.

The two proposals established common ground on an equity injection from existing shareholders and raising fresh financing. Also, both parties agree to offer bondholders two options: exchange notes at par if they participate in the new financing, or take a 45% haircut (i.e. a 55% recovery) if paid in cash.