Raízen Seeks R$65.1 Billion Out‑of‑Court Debt Workout as Court Backs GPA’s R$4.5 Billion Plan

Overview

• Raízen filed an out‑of‑court reorganization in São Paulo to renegotiate roughly R$65.1 billion in unsecured financial debt with initial support from creditors holding just over 47% of the claims.
• GPA’s out‑of‑court plan, targeting about R$4.5 billion in unsecured debt, was accepted by the São Paulo court with creditor signatories representing approximately 46% of the total covered.
• Raízen has up to 90 days to secure the thresholds needed for court homologation, while the judge granted GPA a 180‑day suspension of collections on credits covered by its plan.
• Raízen outlined a potential R$4 billion capitalization by shareholders—R$3.5 billion from Shell and R$500 million from an Ometto‑linked vehicle—and signaled tools such as debt‑to‑equity swaps, new instruments, reorganizations and asset sales.
• Both companies said the processes are strictly financial in scope and exclude obligations to employees, suppliers, customers and other operational partners, with operations continuing normally as negotiations progress.