August 24, 2026 - Braskem Idesa, BFG Supply, TelePacific

This episode covers key developments in three major restructuring and bankruptcy cases:

Braskem Idesa, Mexico’s primary polyethylene supplier, files a prepackaged Chapter 11 in Houston with approximately $3.6 billion in debt, after years of declining ethane deliveries from Pemex dramatically increased production costs. Backed by approximately $409 million in DIP financing, the plan would eliminate more than $920 million in funded debt while leaving trade creditors unimpaired.

BFG Supply, a national horticulture and garden products distributor, enters Chapter 11 after beginning an inventory liquidation 15 days before filing. With more than $340 million in funded debt, the company is pursuing three paths simultaneously—a going-concern sale, inventory liquidation, and real estate dispositions—supported by a proposed $55 million DIP revolver.

And TelePacific pivots from a sale process to a Chapter 11 reorganization after an extensive marketing effort fails to produce a single qualified bid. The amended plan would reduce approximately $1.1 billion in funded debt to a $129 million reorganized capital structure, while first-lien lenders face recoveries of just 2% to 7% and general unsecured creditors are projected to recover between 3% and 11%.

💡 From petrochemical supply disruptions and prepetition liquidations to failed bankruptcy auctions, this episode explores how operational pressures, constrained sale markets, and aggressive balance-sheet restructurings are shaping the latest Chapter 11 cases.

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Welcome to Stretto's Restructuring Report, a podcast featuring notable stories curated by professionals and powered by Stretto Intelligence. Join us each week for the highlights, updates, and news impacting restructuring professionals. Want to go deeper than the headlines? Research Suite by Stretto lets you search across every jurisdiction in one place, with AI summaries cited directly to the docket so you can find, review, and understand the information that matters most. Try the Essential Plan free at researchsuite.stretto.com. Brascom Idesa filed a pre-packaged Chapter 11 petition in Houston on August 17th, carrying approximately $3.6 billion of debt. The company is the primary supplier of polyethylene to the Mexican market. It was formed in 2010 as a joint venture between Brascom of Brazil and Grupo Idesa of Mexico, and it operates a petrochemical complex in Veracruz with annual capacity of just over 1 million tons of ethylene. The cause traces back to a single contract. Under a 20-year supply agreement, Pemex committed to deliver 66,000 barrels of ethane a day. Deliveries came in at 49,000 barrels a day in 2019 and have fallen every year since, reaching 14,000 so far in 2026. The company replaced the shortfall with imported ethane from Texas, and its cost per ton rose from $124 in 2019 to $380 this year. Brascom affiliates have agreed to provide a debtor-in-possession facility of about $409 million, including $279 million in new money at 10% interest paid in kind. The plan would cut funded debt by more than $920 million, split the reorganized equity in equal thirds among Brascom, existing noteholders, and current shareholders, and leave trade creditors unimpaired. A combined hearing is set for September 24th. In other bankruptcy news, BFG Supply and 16 affiliated companies filed Chapter 11 in Delaware on August 18th. The liquidation had already begun. The company signed a liquidation consultant on July 28th and started selling inventory on or about August 3rd, 15 days before the petition date. BFG Supply is a national wholesale distributor of professional horticulture, lawn and garden, and greenhouse products, serving commercial growers, nurseries, and independent garden centers across the United States and Canada. It employs approximately 461 people. The balance sheet carries term loan debt of not less than $299.5 million and a revolving facility of roughly $43 million. Cash on hand at the filing was about $2 million. In November of last year, amendments to both facilities added borrowing capacity but switched term loan interest to payment in kind and added a 3% premium, which accelerated the rate at which the principal balance grows. The company is seeking an asset-based debtor-in-possession revolver of up to $55 million from the same lenders who held its existing revolver with $22 million available before a final order. Three work streams are running at once: a going concern sale, the inventory liquidation already underway, and a real estate disposition program. No stocking horse bidder has been designated. A bidding procedures hearing is scheduled for September 16th, and the financing milestones require the sale to close by October 22nd. Finally, U.S. Telepacific canceled its bankruptcy auction after the marketing process produced no qualified bids and filed an amended plan on August 18th. Telepacific is an Austin-based provider of managed connectivity, unified communications, cybersecurity, and information technology services, serving roughly 11,000 business customers with about 575 employees. It filed Chapter 11 in Houston on June 28th, carrying approximately $1.1 billion of funded debt across five facilities. The sale process ran in two phases. The investment banker contacted approximately 72 potential counterparties. 20 signed non-disclosure agreements, 11 advanced to first-round diligence, and six reached a second round. Not one qualified bid arrived by the August 7th deadline. The auction scheduled for August 12th was canceled, and the company pivoted to a reorganization. The amended plan would convert that $1.1 billion into a reorganized capital structure of about $129 million, consisting of a $54 million exit term loan and two preferred equity tranches of $65 million and $10 million. First lien lenders are projected to recover between 2 and 7%. Second lien lenders would receive warrants at a recovery the company has not yet estimated. Third lien lenders would receive nothing. General unsecured creditors are projected to recover between 3 and 11%. Two objections are pending, one from the Tennessee Department of Revenue and one from an individual employee challenging the plan's third-party release. The combined hearing is set for September 2nd. That's it for this week's restructuring report. For more case summaries, court updates, and bankruptcy insights, subscribe wherever you get your podcasts. And when you need the full story behind a case, Research Suite by Stretto gives you access to cases across all jurisdictions in a single search. Summaries cited straight to the stores. Start free with the Essential Plan at researchsuite.stretto.com