Brazil's Raizen reaches deal for out-of-court debt restructuring, O Globo reports (updated)

Cosan

11/03/2026 24:13

Adds Raizen's reply, context in paragraphs 3-6

SAO PAULO, March 10 (Reuters) - Brazilian sugar and ethanol producer Raizen RAIZ4.SA reached a deal with creditors and bondholders for an out-of-court debt restructuring, local newspaper O Globo reported on Tuesday.

The agreement is set to be announced later on Tuesday, O Globo said, without citing a source for the information. The creditors and bondholders represent 40% of Raizen's debt. The deal does not affect the firm's suppliers, it said.

Raizen declined to comment.

The firm said last week
it was analyzing
 a proposal for a Shell-led 4 billion real ($774.61 million) capital injection, while indicating that a solution to its debt crisis could be implemented in an out-of-court restructuring process.

Raizen, a joint venture between Shell SHEL.L and Brazilian conglomerate Cosan CSAN3.SA, has been discussing with creditors and shareholders for months how to strengthen its capital structure and address billions of dollars of debt.

Its net debt rose to 55.3 billion reais by the end of December due to a combination of elevated investment spending, erratic weather and wildfires that hurt harvests and reduced cane crushing volumes.

($1 = 5.1639 reais)

 (Reporting by Andre Romani, additional reporting by Fernando Cardoso; Editing by Tom Hogue and Daina Beth Solomon)

 ((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))