Raízen debt restructuring draws bids from IG4 and four asset managers

Brazil's Raízen, the sugar‑ethanol joint venture of Cosan and Shell, is negotiating the conversion of roughly R$ 65 billion of debt into equity under an extrajudicial recovery plan approved last week. The plan calls for 45 % of the debt to be swapped for shares, giving creditors about 80 % of the company's capital. IG4 Capital has outlined three purchase options for the distressed credits and seeks to acquire a controlling stake. At the same time, four specialist asset managers—Makalu, Geribá, Laplace and Mapa—are positioning their own proposals to buy portions of the debt and potentially obtain significant equity, especially in the fuel and sugar‑ethanol segments. Analysts note that banks among the creditors could emerge with a larger share of Raízen’s shares and more seats on its board. The conversion deadline is set for March 2027, and the outcome will shape Raízen’s governance and financial recovery.

The bidding process reflects broader interest in Brazil’s distressed‑asset market, with each manager leveraging prior experience in restructuring large, troubled firms to steer Raízen back to profitability.