Unigel weighs bankruptcy filing amid investor push for new capital

Unigel is considering filing for judicial recovery—Brazil’s equivalent of bankruptcy protection—as part of a broader effort to secure fresh capital and navigate ongoing financial difficulties, reports citing its anonymous sources of Brazilian media outlet Valor. The company has signed non-disclosure agreements with prospective investors, granting them access to financial data and restructuring plans. These agreements are valid through October and may be extended. One investor has reportedly conditioned its participation on Unigel entering judicial recovery, a condition the company has not opposed.

Earlier this year, Unigel concluded an out-of-court debt restructuring involving roughly R$4 billion ($720 million) in liabilities, primarily owed to bondholders. The process resulted in a $100 million capital injection and transferred 50% of the company’s equity to creditors, significantly reducing the stake held by the founding Slezynger family.

Proceeds from the restructuring were largely directed toward the construction of a sulfuric acid plant in Camaçari, Bahia, Brazil. Originally budgeted at R$500 million ($90 million) and slated for completion in September, the facility is now expected to come online in December, with commercial operations starting in 2026. Management estimates an additional R$100-120 million ($18-22 million) is needed to complete the project, which remains Unigel’s top priority.

Despite having sufficient reserves to cover the cost, the company is seeking external capital in order to preserve liquidity amid a global downturn in petrochemicals and tightening credit conditions. Two financing offers were received but ultimately rejected due to high cost.

The market downturn has also prolonged the shutdown of Unigel’s acrylic units in Camaçari and Candeias, further undermining earlier financial projections. The company had forecast adjusted EBITDA of $49 million for 2025, rising to $182 million by 2030. However, first-quarter adjusted EBITDA this year reached only R$23 million ($4.1 million).

Unigel is also in the process of returning fertilizer plants in Laranjeiras and Camaçari to Petrobras. It did not participate in the new operator bidding process launched by Petrobras, which is expected to announce the winner shortly. The two companies resolved a previous dispute over natural gas pricing at the units through a settlement in May, with no financial penalties.

Unigel remains committed to its green hydrogen project but is still searching for a joint venture partner. Equipment for the initiative has already been procured.

In a market statement issued Thursday, Unigel confirmed it has initiated negotiations with creditors to establish a standstill agreement, temporarily halting debt repayments. The company said the move aims to strengthen its capital structure while ensuring continuity of operations and investment plans. Production across its facilities continues uninterrupted, and the company affirmed its intent to complete the Camaçari sulfuric acid project by early 2026, describing it as a key driver of future cash generation.