One of the largest companies in the country’s energy and agribusiness sector, Raízen began an extrajudicial recovery process with the aim of reorganizing its financial structure and negotiating debts with creditors, which exceed R$65 billion. But who is this giant?
The company operates in the production of ethanol and sugar, in addition to distributing fuels, products and services through the Shell brand, licensed in Brazil, Argentina and Paraguay. With a broad presence in the energy sector and agribusiness, the company operates around 1.3 million hectares of cultivated area and has 35 sugar, ethanol and bioenergy plants.
In the fuel distribution segment, Raízen has a robust structure, consisting of more than 70 distribution terminals, 68 fueling bases at airports and a network of approximately 8 thousand Shell stations operated by partner resellers. In total, the company has more than 45 thousand employees and around 15 thousand business partners.
Annual production also reflects the company’s scale. There are around 34.2 billion liters of biofuel and approximately 5 million tons of sugar per year. In bioenergy parks alone, production reaches 2.5 billion liters of ethanol annually.
Despite its strong presence in the energy and logistics sector, the company decided to resort to extrajudicial recovery to deal with the . With the initial support of a relevant part of creditors, Raízen seeks to buy time to avoid a worsening of the financial crisis.
The model adopted is similar to that used recently by Grupo Pão de Açúcar (GPA), which also resorted to extrajudicial recovery with initial support from creditors while working to reach the percentage necessary to consolidate the agreement.
Extrajudicial recovery
Extrajudicial recovery is a mechanism provided for in Law No. 11,101/2005 that allows companies to negotiate directly with their creditors before submitting it for court approval.
In this model, the company presents an agreement with part of the creditors, in the case of Raízen 47%, defining new payment conditions and reorganization of debts. For the plan to be binding on all creditors in the included category, it must be joined by creditors representing more than half of the credits in that class.
After negotiation, the plan is presented to the Judiciary along with financial documents and a list of creditors. The judge orders the publication of a notice so that creditors are aware of the request and can present any objections within 30 days.
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If there is a dispute, the company has a few days to respond. The judge then analyzes the plan and decides whether to approve it or not.
When approved, the agreement becomes a court decision and the new payment conditions become mandatory for the creditors covered, allowing the company to carry out the financial restructuring process.
