Braskem (BAK), controlled by Petrobras (PBR) and Novonor, has tapped the full $1 billion unsecured credit line as it faces soft petrochemical demand and mounting environmental liabilities, Bloomberg reported Friday, citing sources familiar with the matter.

This is the company's first draw on the facility, arranged in 2021 and scheduled to mature late next year, according to the report.

The company is seeking to renew the facility without collateral, while its hiring of advisers to "optimize" finances last week sparked debt restructuring concerns and a market sell-off, the report added.

Shares of Braskem were down 1.2% in recent trading.

Braskem didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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