Braskem SA’s bondholders are balking at a restructuring proposal presented by the petrochemical giant, increasing pressure on Petrobras to commit fresh capital into the business, according to people familiar with the matter. Tensions escalated after Braskem controllers Petrobras and IG4 Capital Group softened the language around a capital injection.

Under Braskem’s latest proposal, presented in late August, creditors would provide about $2 billion of new money. Roughly $1.25 billion would be used to repurchase existing debt at as much as 50% of face value, while the remaining $750 million would go toward working capital. Creditors are also demanding shareholders make an enforceable commitment, with some making it clear there is no deal without a capital injection.

Petroleo Brasileiro SA has become increasingly involved in the negotiations — and while it wants to avoid having Braskem file for bankruptcy, it has so far been unwilling to provide the type of enforceable capital commitment sought by creditors. The two sides remain so far apart that some creditors consider not submitting a counter proposal at all. The gap remains wide enough that the possibility of a bankruptcy filing has returned prominently to the discussions.

Braskem and IG4 declined to comment. Petrobras didn’t immediately reply to a request for comment. The parties have until Oct. 9 to agree on a term sheet.