Business · Companies · 5 hrs ago
Raízen approves debt restructuring plan and considers up to R$39.8 billion in capital
Raízen approved an out-of-court debt restructuring plan on Friday, October 30.
The Brazilian company produces sugar and ethanol and distributes fuel, and is controlled by Cosan and Shell.
The plan covers R$61.4 billion in debt and had support from 81.6% of creditors.
Under its terms, 45% of the debt will be converted into shares, while the rest will be replaced or refinanced with new debt securities.
A capital increase could reach R$39.8 billion; Shell will contribute R$3.5 billion, while Cosan will not take part and will see its stake diluted.
Raízen’s board is due to consider the capital increase on November 6.
The plan also calls for splitting Raízen into two listed companies: one for sugar, ethanol and bioenergy, and another for Shell-branded fuel distribution, subject to conditions in the plan.
Raízen shareholders approved the implementation of the company’s out-of-court restructuring plan on Friday, October 30.
The plan covers R$61.4 billion in debt and had the support of 81.6% of creditors.
The company announced a capital increase that could range from R$3.5 billion to R$39.8 billion.
Shell will contribute R$3.5 billion, while businessman Rubens Ometto is expected to invest about R$500 million through the Aguassanta fund.
Cosan will not take part in the capital increase and will see its stake in Raízen diluted.
The reorganization also envisages separating fuel distribution from sugar, ethanol and bioenergy production into two independent listed companies.
- Who
- Raízen’s shareholders approved the plan. Raízen is controlled by Cosan and Shell.
- What
- They approved implementation of an out-of-court debt restructuring plan. The company also announced a possible capital increase of up to R$39.8 billion.
- When
- Friday, October 30. The articles were published in 2026.
- Where
- Not stated
- Why
- The plan restructures R$61.4 billion in debt. The sources do not state a more specific reason.
This story does not have two clearly opposing sides.
The restructuring plan was ratified.
Raízen shareholders voted to approve implementation of the out-of-court restructuring plan.
The company’s board is scheduled to meet to consider approval of the capital increase.
- Debt covered
- R$61.4 billion
- Creditor support
- 81.6%
- Possible capital increase
- R$3.5 billion to R$39.8 billion
- Shell contribution
- R$3.5 billion
- Ometto investment
- About R$500 million through the Aguassanta fund
- Debt-to-equity conversion
- 45% of credits at R$0.25 per share
2 sources
What people are saying
Such segregation is conditional on the fulfillment of all suspensive conditions of the plan, subject to the legal deadlines and conditions