Pimco, Unigel‘s (RD/D) largest bondholder, has offered the company USD 150m in exchange for an 80% equity stake, according to two sources close to the matter. The proposal also includes a 60% haircut on the Brazilian chemical producer’s total debt, according to the two sources.

The new money could be provided by an ad hoc group of bondholders, with a backstop from Pimco, the first source said. Unigel’s remaining debt, after the 60% haircut, would be repaid in installments, according to the first and second sources. The haircut had been previously requested by Unigel, the first source noted.

If the proposed change of control takes place, Pedro Wongtschowski, a shareholder of Grupo Ultra, would be appointed to a key position at Unigel, according to the first and second sources. Henri Slezynger, founder and controller of Unigel, is close to Wongtschowski and has signaled that the former chairman at Grupo Ultra would be indicated to the board of Unigel, a person briefed on the matter said.

A spokesperson at Unigel declined to comment on the matter, and a spokesperson at Pimco did not respond to a request for comment.

Bondholders are now reviewing the proposal and are expected to present a new offer this week, a third source close said.

On another front of the negotiation, holders of Unigel’s BRL 500m (USD 102.2m) in domestic bonds will likely stick with an offer the group presented to the company two months ago to extend their debt maturity, according to the first source.

The debenture holders offered an eight-year maturity extension, with a two-year grace period, at a low interest rate and secured by one of Unigel’s plants, the two sources said. The proposal is “simple, implementable and harmonious,” the second source noted.

Unigel, however, “needs more than [a debt] extension, it needs to deleverage,” the third source said. “It is essential to have a haircut.”

The company and its domestic bondholders held a meeting on Monday 4 December, and what seems to be the main deadlock for Unigel is the offer of a guarantee, according to the first source. The debenture holders also tried to show that the models used in the company’s projections are incorrect, the same source added.

Unigel has reached an agreement to sell Plastigas in Mexico to local company Verzatec, and proceeds will be used to strengthen its cash position. The Brazilian chemical producer is also in talks with government-controlled oil firm Petrobras (BB/Ba1/BB-) for a tolling agreement that is expected to generate USD 100m in free cash flow per year for Unigel.

On 6 December, debenture holders will meet to vote on the waiver of a covenant limiting net debt-to-adjusted EBITDA to 3.5x, as reported. In September, domestic bondholders approved an initial waiver, which expires on 5 December.

Unigel skipped the payment related to its USD 530m 8.75% 2026 bonds, and the 30-day cure period expired on 2 November.

The 2026 bonds traded at 33.5 today, according to MarketAxess.