Brazilian Court Approves Raízen's $61.4 Billion Debt Restructuring Plan

A São Paulo court has officially approved Raízen's out-of-court restructuring plan, validating the renegotiation of approximately R$ 61.4 billion in financial debts with banks and investors. This judicial homologation, issued on Thursday, May 30th, by the 3rd Court of Bankruptcies and Judicial Recoveries, makes the plan's terms binding for all creditors included in the restructuring. Out-of-court restructuring allows companies to directly negotiate debt terms with creditors to gain more time or better payment conditions, aiming to avoid more severe financial issues like bankruptcy. Raízen reported that 81.6% of unsecured financial creditors adhered to the plan, a sufficient majority for judicial approval, with no creditors filing objections. The company stated this approval reinforces stakeholder confidence in a consensual solution for Raízen's debt, balancing short-term liquidity needs with a sustainable long-term capital structure. The approved plan includes provisions for some creditors to convert debt into equity through the issuance of units or to receive new secured debt instruments. Raízen also plans a capital increase of R$ 3.5 billion to R$ 4 billion, to be subscribed by Shell Brasil Petróleo and potentially Aguassanta Participações, controlled by the family of Raízen's controlling shareholder, Rubens Ometto. Further measures involve reorganizing Raízen's structure, separating fuel distribution and energy businesses, and divesting certain assets.