Brazil's state oil company Petrobras is weighing whether to grant improved payment terms to Braskem on some contracts as the petrochemical producer races to resolve its debt situation before a critical deadline, according to Bloomberg.
Braskem faces an August 24 deadline. If it cannot find a solution for its debt woes before that date, it may be forced to file for bankruptcy protection.
People familiar with the matter told Bloomberg that Petrobras is considering the move as part of broader debt talks. The discussions reflect the urgency surrounding Braskem's financial situation and the pressure on all parties to reach a resolution before the deadline passes.
Braskem is one of Latin America's largest petrochemical companies. Petrobras holds a significant stake in the firm. Improved contract terms from Petrobras could provide Braskem with short-term financial relief as it works toward a longer-term solution.
