Raízen Creditors Back Debt-to-Equity Plan as Shell Pledges R$3.5 Billion

Overview

• Creditors representing 80.15% of claims agreed to a restructuring that converts 45% of liabilities into equity and refinances the remaining 55%.
• Shell committed R$3.5 billion in new capital and Raízen controller Rubens Ometto has an option to contribute up to R$500 million in direct investment.
• Raízen and its controllers say the extrajudicial recovery is progressing and that the plan includes separating sugar/ethanol production from fuel distribution to make units easier to sell or fund.
• Rubens Ometto told reporters on Monday that the process “is going very well,” he denied talks with Petrobras over ethanol and said he will not keep the reported R$90 million annual board pay.
• The deal will dilute current owners—Cosan and Shell each now hold about 44%—and its success depends on completing legal steps, creditor confirmations and the planned disinvestments that will reshape Raízen’s operations.