Raízen secures extrajudicial debt restructuring for R$64.7 bn

Raízen filed a Plan of Extrajudicial Recovery with the 3rd Bankruptcy Court in São Paulo, obtaining the support of 75.45% of its creditors, which covers about R$64.7 billion in debt. The proposal offers several options for creditors, including swapping debt for new financial instruments, converting 45% of the restructured credits into ordinary shares and preferred shares at R$0.50 per unit, and refinancing the remaining 55% through new debt issuance.

Key measures include a R$3.5 billion capital increase by Shell, Raízen’s main shareholder, and a possible additional R$500 million contribution from Aguassanta Participações. The plan also calls for asset segregation, continued disinvestment, and corporate reorganisations aimed at lowering leverage, improving cash flow and preserving operational continuity. Raízen emphasised that the restructuring is purely financial and will not affect its obligations to customers, suppliers or other commercial partners.