Raízen's recovery plan moves ahead as Ometto's R$500 M capital push fades

Raízen, the joint venture of Cosan and Shell, filed for extrajudicial bankruptcy protection on 11 March, citing R$65 billion in debt. The company aims to submit a court‑approved restructuring plan by early June, with a deadline of 9 June for creditor approval.

A planned R$4 billion capital injection from Shell and up to R$500 million from Rubens Ometto, Cosan founder, has become uncertain. Sources say Ometto may withdraw his contribution, which would not materially change Raízen's financial balance but would reduce Cosan’s equity stake. Cosan’s CEO Marcelo Martins confirmed the firm will not match Shell’s anticipated R$3.5 billion injection and expects a substantial dilution of its shareholding.

Bondholders are pressing for a lower debt‑to‑equity conversion rate than the 45 % proposed, arguing the current terms are too costly. Shell reiterated its support for the recovery process, stating it will “continue working closely with Raízen’s leadership and creditors to secure the long‑term future of the business.” Negotiations remain ongoing, but sources believe an agreement will be reached before the June deadline.