BAK - Braskem says settlement still pending on Alagoas incidents

2023-07-05 12:52:34 ET

Braskem ( NYSE: BAK ) edges into positive territory after falling as much as 4% in Wednesday's trading, as the company said it still had not reached a final payment settlement to resolve complaints of earth tremors, sinking soil and damage to buildings near one of its operations in Brazil's Alagoas state.

In a Brazil regulatory filing responding to a press report, Braskem ( BAK ) said it has advanced in talks with the city of Maceió, the capital of Alagoas, on a settlement regarding the incidents but it had not signed an agreement and multiple parties must approve any potential terms.

The environmental disturbances allegedly stemming from the company's nearby rock salt extraction activities led to the evacuation of several neighborhoods in the city.

Separately, Braskem ( BAK ) was downgraded to Neutral from Outperform by J.P. Morgan, citing a decline in petrochemical spreads that has weighed on profitability, and limited potential upside to the stock's fair value.

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