Braskem, one of the world's largest petrochemical producers, filed for out-of-court debt restructuring on Monday, August 24, after the move was approved by its board of directors, making it the latest major Brazilian company to turn to creditors and the courts to renegotiate its debts in 2026.
The company said its debts totaled R$56 billion (US$10.9 billion) and that it would formally submit the filing once the relevant documents were completed.
Braskem said the decision was driven by a challenging economic climate. The global petrochemical sector is facing oversupply, thinner margins and weak demand, and at Braskem the cost of goods sold had come to consume about 96% of net revenue.
In the northeastern state of Alagoas, ground subsidence linked to rock-salt mining has generated billions of reais in liabilities for the company. In June, a federal court accepted a complaint filed by federal prosecutors over the case, and Braskem's shares fell nearly 15% that trading session. The company's capital structure has also added pressure on its cash position, which may have contributed to the need for a restructuring plan.
Braskem is not alone. Four other major companies across different sectors have turned to extrajudicial and judicial recovery mechanisms so far this year.
Casas Bahia
Last week, retail group Casas Bahia filed for judicial recovery amid a financial crisis and a round of store closures. According to a material fact disclosed on Sunday, August 16, the decision followed a worsening of the company's financial conditions.
The filing came after Casas Bahia posted a loss of R$10 billion in the second quarter, 18 times larger than in the same period a year earlier.
After twice postponing the release of its financial results, Casas Bahia also confirmed in its earnings report that it was closing 298 stores.
In a filing sent to Brazil's securities regulator, the CVM, the group said it had been hit by a challenging macroeconomic environment marked by high interest rates, tight credit and rising financing costs.
Although this latest filing was for judicial recovery, the retailer had already sought out-of-court recovery in April 2024 for debts totaling R$4.1 billion. São Paulo's 1st Bankruptcy and Judicial Recovery Court approved that plan two months later. Even with that earlier restructuring, mounting debt continued to weigh on Casas Bahia's performance, pushing the company to file for judicial recovery this time.
Marabraz
A day before the Casas Bahia announcement, furniture and appliance chain Lojas Marabraz also filed for judicial recovery. According to the petition sent to São Paulo State's 3rd Bankruptcy and Judicial Recovery Court by the law firm Campana Pacca, the filing was made on an urgent basis and involves debts of about R$140 million.
The filing shows that, beyond the effects of persistently high interest rates, Marabraz's troubles also stem from corporate and family disputes. Falling consumer spending, rising defaults and shifts driven by the digitalization of retail have also weighed on the company and on other retailers in the same segment.
Raízen
Also tied to the infrastructure sector, Raízen, a sugar and ethanol producer and fuel distributor, filed an out-of-court recovery plan in March. At the time, the company had the backing of creditors representing more than 40% of debt exceeding R$60 billion. Support later rose to 81.6%.
Among the creditors, banks hold roughly half of the debt, while bondholders, holders of agribusiness receivables certificates and debenture holders account for the other half, according to the report. In July, the 3rd Bankruptcy and Judicial Recovery Court of the São Paulo Central Forum approved the plan on Thursday, July 30. Under the extrajudicial process, only servicing of financial debt was suspended, with payments to suppliers continuing as normal, the report said.
Pão de Açúcar (GPA)
In March 2026, GPA, which operates the Pão de Açúcar supermarket chain, announced a deal with its main creditors to present an out-of-court recovery plan. According to a material fact disclosed by the retailer, the plan covers certain unsecured payment obligations that are not part of the company's current or operating obligations, totaling approximately R$4.5 billion. The agreement was unanimously authorized by the board of directors at the time.
A day after the announcement, the group told the market that the courts had accepted its extrajudicial recovery request, with the case granted by the 3rd Bankruptcy and Judicial Recovery Court of São Paulo.
More recently, GPA disclosed that it had obtained approval of the main terms and conditions for issuing new debentures following the start of its extrajudicial recovery process. The approval was granted by more than half of the creditors subject to the plan, and two-thirds of them chose a payment option involving new funds being contributed to GPA. The company said the approval represented an important step toward implementing the financial restructuring solution set out in the plan.
