Raízen Confirms R$4 Billion Lifeline From Controllers as Shell Takes Lead

Overview

• Raízen disclosed a proposed capital contribution of R$3.5 billion from Shell and R$500 million from the family of Cosan’s controller Rubens Ometto to reinforce its balance sheet.
• Management said it is evaluating a comprehensive plan that includes converting part of the debt into equity, extending remaining maturities, and selling noncore assets while maintaining normal operations.
• Cosan is not expected to match Shell’s cash injection and BTG-linked funds have exited the talks after creditors rejected their proposal, shifting negotiations primarily to Shell and bondholders.
• Creditors continue to press for substantially larger support, with demands reported up to R$12 billion and some estimating Raízen may need about R$25 billion in capital.
• Reporting indicates Shell’s creditor plan under discussion could leave it as majority shareholder and require consolidating Raízen’s debt, and Shell’s Brazil chief has said the preference is to keep the company integrated after recapitalization.