New York Suspends Braskem Shares

  • New York Suspends Braskem SharesNew York Suspends Braskem Shares

The New York Stock Exchange (NYSE) suspended trading of Braskem's US-listed shares on May 13 as the company said it would miss the deadline to file its 2017 annual report. The Brazilian petrochemical producer was due to file the report known as a Form 20-F, with the US Securities and Exchange Commission by May 16.

Braskem said it intends to appeal the decision and make an oral presentation to NYSE’s board of directors committee on a day still to be scheduled. The company added that it would continue to dedicate significant efforts and resources toward filing the 2017 and 2018 Forms 20-F as expeditiously as possible and resume trading of its shares on the NYSE.

The company has, however, filed its report for the Brazilian securities regulator (CVM), so that its shares will continue to be listed on the Sao Paulo Stock Exchange.

Separately, Braskem has suspended its salt mining operations, and subsequently halted its chloralkali and dichloroethane plants in Maceio, Alagoas, Brazil. Braskem uses the extracted salt – or sodium chloride - to make chlorine at Maceio.

The company said it is also assessing the impact of these closures on its PVC plant in Marechal Deodoro, Alagoas, along with plants at its Camacari petrochemical complex in Bahia.

The decision to halt operations was prompted by a report from the Brazilian Geological Service (CPRM) that said the appearance of fissures in buildings and a small earthquake in Maceio were caused by Braskem's salt extraction activities. Braskem said it has been collaborating with the authorities and will analyze the results of CPRM's report and take appropriate measures.

It is not known at present when the plants are likely to restart.

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