(Bloomberg) -- Braskem SA, one of the world’s largest petrochemical makers, paid interest due Monday on some of its dollar bonds, people familiar with the matter said, easing investor concerns while it continues to review its debt amid a prolonged industry downturn.
The Brazilian firm made payments on dollar bonds maturing in 2028, the people said, asking not to be identified because the information isn’t public. The company had about $64 million due in those notes and also in bonds due 2031, according to data compiled by Bloomberg.
Braskem declined to comment.
This month’s obligations include coupon payments on bonds maturing in 2030, 2050 and 2081. The notes due in 2081 are hybrid notes and were among the biggest losers in the selloff that has engulfed Braskem, as their indenture allows the company to defer interest payments without triggering a default.
Braskem, which has struggled with depressed prices in the petrochemicals market and an environmental disaster at one of its salt mines, has $130 million in debt payments due this month, the data show. The firm had $1.3 billion in cash as of the end of September, and tapped a $1 billion credit facility in October.
Braskem hired advisers to review its capital structure last year. At Fitch Ratings, analysts flagged “heightened” refinancing risk and liquidity pressure, downgrading its credit score to CC late last year.
Novonor SA, the troubled conglomerate that co-controls Braskem, is working on a deal to sell its stake to a fund advised by asset manager IG4 Capital.
Subsidiary Braskem Idesa SAPI, meanwhile, failed to reach an agreement on a restructuring proposal, the company said Monday.
--With assistance from Rachel Gamarski.
(Updates with company comment in third paragraph, more context in fourth.)
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