en.Wedoany.com Reported - Brazilian sugar and ethanol producer Raízen has secured sufficient support from creditors and bondholders to proceed with an out-of-court restructuring totaling approximately BRL 64.7 billion, making it the largest such restructuring in the country's history.

The joint venture between Shell and Cosan announced in a statement late Friday (5th) that creditors holding over 75% of the unsecured financial debt covered by the restructuring agreement have signed the plan, meeting the legal threshold. The plan offers creditors three debt treatment options, including exchanging for new debt instruments or converting part of the owed amount into company equity.

Under the equity participation option, 45% of the restructured debt will be converted into units, each consisting of one Raízen common share and one preferred share, priced at BRL 0.50 per unit, or BRL 0.25 per share. The remaining 55% will be replaced with new debt instruments. Shell has committed to injecting BRL 3.5 billion in new capital, with Aguassanta Participações, controlled by Rubens Ometto, having the option to add an additional BRL 500 million, both in exchange for common shares. Shell expressed support for the agreement in a statement, noting that it preserves Shell's seat on Raízen's board of directors.

Raízen's financial difficulties intensified after the company made large-scale investments in second-generation ethanol plants and renewable energy projects, compounded by lower-than-expected sugarcane harvests, high interest rates, and capital-intensive expansion—which failed to generate anticipated returns and strained cash flow.

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