Raízen, a sugar and ethanol producer and fuel distributor, filed an extrajudicial recovery plan, according to sources familiar with the matter heard by the CNN Money this Tuesday (10). The company has the support of creditors representing more than 40% of the debt.
According to the Brazil Journal publication, the company included R$65 billion in competitive debts in the request. The company would have ended December with R$17.3 billion in cash.
Banks account for around half of the debt, while bondholdersCRA holders and debenture holders account for the other half. Both correspond to 40% of the amount.
The plan seeks to provide the company with a protected environment to preserve cash, especially as the start of the sugarcane harvest approaches, a period that requires greater working capital.
The extrajudicial recovery only suspends the service of financial debts, while payments to suppliers continue normally, according to the report.
In the operation, the company is being represented by the offices of E.Munhoz Advogados and Pinheiro Neto, in addition to financial advisory services from Rothschild & Co.
Last Wednesday (4), Raízen informed, in a relevant fact, that it was evaluating the implementation of a “comprehensive and definitive” solution to strengthen its capital structure and, if necessary.
According to the document, the proposal under analysis includes a capital contribution of R$4 billion, of which R$3.5 billion would come from the Shell Group and R$500 million from a vehicle controlled by Aguassanta Investimentos, which belongs to the family of Cosan’s controlling shareholder.
In February, the energy producer presented one for the 2025/26 crop year, a result six times higher than that recorded in the same period of the previous cycle. In the first nine months of the crop year, the company recorded a loss of R$19.8 billion.
Already this Tuesday. The risk rating agency cited the company’s high level of debt and the persistent generation of negative cash flow.
The downgrade came after the company announced possible measures to restructure its capital structure. Among them is a capital injection of R$3.5 billion by Shell and an additional contribution of R$500 million from the businessman Rubens Omettocontroller of Cosan.
The Cosan conglomerate spoke in a conference call this Tuesday that it hopes to see in the coming days. Cosan’s CEO, Marcelo Martins, said that the company believes that the evolution of discussions about Raízen could bring a satisfactory solution to the market.
“We believe today that it should lead to an evolution so that we can find a satisfactory solution for the market that definitively solves Raízen’s problem”, declared Martins.
