✓ verbatim from the press
Raízen filed with São Paulo's court on Friday (5th) the largest extrajudicial restructuring plan in Brazilian corporate history, reorganizing R$ 65 billion in debt with 75% creditor support. The agreement converts 45% of debt into shares at R$ 0.25 per share and refinances the remaining 55% into new bonds, according to people familiar with the process who spoke to Brazil Journal. ✓
Press quotes (1)
"A Raízen já conseguiu a adesão da maioria de seus credores para protocolar o maior pedido de recuperação extrajudicial da história corporativa brasileira, envolvendo R$ 66 bilhões em dívidas"
The operation involves 19 financial institutions and 80 relevant bondholders, plus over 100,000 individuals holding company securities. Shell will inject R$ 3.5 billion in the recapitalization, while Aguassanta Investimentos, Rubens Ometto's family office, may contribute an additional R$ 500 million. After conversion, creditors should control over 80% of Raízen, reducing Cosan's stake to between 3% and 4%. ✓
Press quotes (1)
"A lista de impactados pela recuperação extrajudicial da companhia inclui 19 instituições financeiras, cerca de 80 bondholders relevantes e mais de 100 mil pessoas físicas que adquiriram títulos da empresa"
The plan provides for splitting the company in two by December 2027: Raízen Energia (ethanol, sugar and bioenergy) and Raízen Combustíveis (distribution). The company has already announced the sale of six plants and is negotiating additional divestments involving assets with crushing capacity between 10 million and 15 million tons, according to Novacana reporting. With revenue of R$ 255.3 billion and adjusted EBITDA of R$ 10.8 billion in the last fiscal year, Raízen seeks to reduce leverage to close to 3 times and eliminate R$ 4.5 billion in annual financial expenses. ✓
Press quotes (2)
"A empresa já anunciou a venda de seis usinas e negocia desinvestimentos adicionais envolvendo ativos com capacidade de moagem entre 10 milhões e 15 milhões de toneladas."
"R$ 255.3 billion in revenue R$ 10.8 billion in adjusted EBITDA"
The joint venture between Cosan and Shell reached this situation after failed bets on second-generation ethanol and aviation fuel, combined with high interest rates and weaker harvests than expected. The company's stock closed today at R$ 0.40, versus R$ 7.40 at its IPO in August 2021. The indicative timeline points to closing the restructuring by March 2027. ✓
Press quotes (1)
"A companhia, uma joint venture entre a Cosan e a Shell, protocolou um pedido de recuperação extrajudicial em março, consequência de algumas apostas malsucedidas em etanol e combustível de aviação, além dos juros elevados e de safras mais fracas do que o esperado"
Conversion of 45% of debt into shares and refinancing of remaining 55%
Split into two companies by end of 2027
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (2)
Initial resistance from foreign debt holders
Conflicting versions (1)
Total restructured debt amount
-
How will the R$ 65 billion breakdown by creditor type and what specific guarantees exist?
Why it's still unknown: Sources mention 19 financial institutions and 80 bondholders, but don't detail composition between bank, supplier, labor and tax creditors
-
What is the specific timeline for implementing the already announced plant divestments?
Why it's still unknown: Novacana reports announced sale of six plants, but no source specifies dates or buyers
-
How will the spin-off affect employees and operations in the two years until 2027?
Why it's still unknown: The plan provides for separation into Raízen Energia and Raízen Combustíveis, but there are no details on operational or employment impact