Petrobras' (PBR) head of industrial processes and Braskem board director William Franca said he expects the petrochemical firm to reach a deal with creditors to restructure around $11 billion in debt and avoid a bankruptcy filing, Bloomberg reported Thursday.

State-controlled Petrobras has not yet made a decision on whether to inject new capital into Braskem, the executive told Bloomberg on the sidelines of a conference in Rio de Janeiro.

Braskem is looking to restructure its debt after years of financial strain, and bondholders are asking its controlling shareholders Petrobras and IG4 Capital to commit to a $3 billion capital injection, according to the report.

Petrobras and Braskem did not immediately reply 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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