Braskem Idesa, Creditors Discuss Loan for Potential Chapter 11

Mexico’s Braskem Idesa SAPI is in talks with creditors for finance that would fund the company through a potential Chapter 11 bankruptcy proceeding in the US, according to people familiar with the matter.

The company is seeking to line up so-called debtor-in possession financing, the people said, asking not to be named discussing private details. Discussions are ongoing and plans for a Chapter 11 aren’t final, they said.

Braskem Idesa — a joint venture between Brazil’s Braskem SA and Mexico’s Grupo Idesa SA — has been in talks with creditors to restructure its debt, but has so far failed to ...