Braskem Idesa, S.A.P.I takes strategic action through consensual restructuring to reduce its debt by more than US$920 MM

Braskem Idesa, S.A.P.I. (together with its subsidiaries, "Braskem Idesa" or the "Company") today announced that it has reached a comprehensive consensual restructuring agreement with all of its major stakeholders, including its shareholders — Braskem S.A., Braskem Netherlands B.V. (collectively, "Braskem"), and Grupo Idesa S.A. de C.V. ("Idesa") — its term loan lender, and a substantial majority of its noteholders, including members of an ad hoc noteholder group. This consensual financial solution will both raise fresh capital and substantially de-leverage the Company's balance sheet, reducing total senior debt from approximately US$2.5 billion to approximately US$1.6 billion, positioning Braskem Idesa for long-term operational and financial success. To implement the restructuring in the most expedited manner, Braskem Idesa and certain of its subsidiaries commenced "prepackaged" in-court restructuring proceedings in the U.S. by filing voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas. The Company is targeting to emerge from its Chapter 11 proceedings within approximately 60 to 90 days. As part of the restructuring, Braskem, the Company's majority shareholder, will be contributing a total of US$476 million (inclusive of certain amounts funded prior to the bankruptcy filing), underscoring its renewed commitment to Braskem Idesa and its future growth. Upon emergence, Braskem will continue to own a majority stake of the Company's reorganized equity and Idesa and its affiliates will be the Company's largest minority shareholder. All day-to-day operations will continue as normal and without interruption. Unsecured creditors and trade vendors' will be paid pursuant to first day motions and the plan of reorganization filed with the court. The Company looks forward to working with its stakeholders as it ramps production and normalizes its operations. Braskem Idesa has filed a number of customary "first day" motions with the Court to support business-as-usual operations on all fronts during the Chapter 11 process; this includes continuation of employee wages and benefits in the ordinary course. Approval is expected in short order. For additional information about the Company's debt restructuring and access to Court documents, please visit https://restructuring.ra.kroll.com/BraskemIdesa/ Certain additional information that was provided to creditors under non-disclosure agreements is available at https://inversionistasbraskemidesa.com.mx/indexen.html The Company is represented by Cleary Gottlieb Steen & Hamilton LLP as international legal counsel, Hunton Andrews Kurth LLP as Texas counsel, Sainz Abogados as Mexican legal counsel, Lazard as investment banker, and Alvarez & Marsal as restructuring advisor. About Braskem Idesa Founded in 2010, Braskem Idesa is a Mexican company established through the association of Braskem (Brazil), the continent's largest thermoplastics producer, and Grupo Idesa, one of the leaders in the Mexican petrochemical industry. Together, they developed a petrochemical complex focused on the operation and production of high- and low-density ethylene and polyethylene in the municipality of Nanchital, Veracruz, Mexico. The complex, which went into operation in April 2016, produces 1,050,000 tons of ethylene and polyethylene per year. To find out more, please visit: www.braskemidesa.com.mx . Forward-Looking Statements This press release contains forward-looking statements. Such statements may include words such as "may" "will," "expect," "intend," "anticipate," "estimate," "project," "believe" or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on Braskem I...