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Raízen Publishes Recovery Plan with Shell Committing R$3.5 Billion

The proposal pairs a large Shell equity injection with debt-for-equity swaps to cut leverage, reorganize the company into fuel and bioenergy units, and requires creditor approval plus a tax settlement to close.

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Overview

  • Raízen published a draft extrajudicial recovery plan on Wednesday, June 3, 2026, that centers on a R$3.5 billion investment by Shell at R$0.25 per share and a possible additional R$500 million from Aguassanta.
  • Creditors are offered three choices: Opção A converts 45% of restructured debt into Units (one common and one preferred) at R$0.25, Opção B takes an 80% haircut with a single payment due March 31, 2047, and Opção C offers limited cash buyouts subject to a R$150 million cap.
  • The plan maps the remaining 55% of restructured debt into new long-dated credit instruments split between Raízen Combustíveis (37.4%) and Raízen Energia (17.6%), and it mandates a legal split of the company into those two businesses by the end of 2027.
  • Governance would be reshaped to a seven-member board with four seats appointed by creditor supporters including the chair, Shell keeping at least one director while its brand license remains, and CFO Lorival Luz taking on the additional role of Chief Restructuring Officer.
  • Completion is conditional on creditor votes, execution of a prioritized tax transaction to resolve federal liabilities, and other precedents with a target closing no later than March 31, 2027, and the company plans divestments or partner searches for the fuels unit to further cut leverage.