Raízen Files Extrajudicial Plan to Restructure R$64.7–65 Billion of Debt

Overview

• Raízen filed its extrajudicial recovery plan with the 3rd Insolvency Court in São Paulo on Friday, June 5, and reported support from creditors holding 75.45% of the affected claims.
• The proposal converts 45% of the restructured debt into equity and re-profiles the remaining 55% into new debt instruments while offering specific terms for banks and bondholders.
• Shell has committed to a R$3.5 billion capital injection and Aguassanta has offered a possible additional R$500 million, parts of a package meant to shore up liquidity and confidence.
• The company completed a US$1.42 billion sale of its Argentina downstream assets days earlier and says proceeds will help reduce leverage as it plans to split processing and fuel distribution businesses by the end of 2027.
• The agreement must win higher creditor adhesion and be homologated by the court to bind all creditors, a step that will determine whether Raízen avoids formal judicial recovery and how ratings, bond prices and supplier relations evolve.