Brazilian State Sues Braskem Over Compensation for Damage From Mining

Prosecutors for the Brazilian northeastern state of Alagoas filed a lawsuit against the country’s largest petrochemical company, Braskem SA, seeking to guarantee compensation for damages caused by the firm, the Alagoas government said on Friday, Reuters reported. In the lawsuit, the state asks a local court to block any attempt from Braskem’s controlling shareholder, the Odebrecht conglomerate, to spin off the business based in Alagoas to facilitate a possible deal to sell the petrochemical company. Odebrecht, which is struggling to restructuring its 80 billion reais ($20.63 billion) in debt, had plans to sell a controlling stake in Braskem. Local newspaper O Globo said this week that the construction group could separate the business in Alagoas as a way to facilitate a deal. The Alagoas government says Braskem’s mining activities in the state have caused hundreds of residences and commercial buildings in three villages to present cracks. Read more

Location