Raízen secures 75% creditor backing for historic R$65bn recovery plan

Brazilian energy joint venture Raízen has obtained the support of more than 75% of its creditors for an extrajudicial recovery plan valued at roughly R$64.7‑65 billion, the largest such restructuring in the country. The proposal calls for converting 45% of the debt into equity at R$0.25 per share, giving creditors about 80% of the company’s capital. The remaining 55% of the liabilities will be refinanced through new debt instruments. Shell, Raízen’s co‑owner, will inject R$3.5 billion, and the family office of Rubens Ometto (Aguassanta Participações) may contribute up to R$500 million. The plan also includes a corporate split by the end of 2027 into Raízen Energia (ethanol, sugar and bio‑energy) and Raízen Combustíveis (fuel distribution). Governance changes will see the current CFO, Lorival Luz, become Chief Restructuring Officer and a new seven‑member board, with four directors nominated by supporting creditors. The agreement is now pending judicial homologation after being filed in São Paulo’s 3rd Bankruptcy Court.