Petrobras is weighing whether to grant improved payment terms to Braskem on some contracts as the petrochemical producer races to find a solution for its debt woes ahead of an August 24 deadline to avoid bankruptcy protection, Bloomberg News reported Monday, citing people familiar with the matter.
Petrobras is mulling extending payment timelines, cutting interest rates, and boosting naphtha supply to Braskem, which could reduce Braskem's need for bank credit and leverage, according to Bloomberg.
No decision has been made, the people said, according to the report.
Petrobras had tightened naphtha supply conditions as Braskem's finances deteriorated, cutting its share of the company's naphtha supply to about 30% from as much as 70% previously, the report said, adding that with IG4 Capital Group taking shared control of Braskem, Petrobras now has greater visibility into the company's business.
Petrobras did not immediately respond to a request for comment from.
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