Brazil's Raizen slides on debt plan, races to secure creditor backing

Cosan

28/05/2026 21:54

    SAO PAULO, May 28 (Reuters) - Shares in Brazilian sugar and ethanol producer Raizen RAIZ4.SA plunged on Thursday, a day after the company unveiled its out-of-court restructuring terms, including the conversion of 45% of restructured debt into equity at 0.25 reais ($0.05) per share.
In afternoon trading in Sao Paulo, Raizen shares were down close to 17%, at 0.35 reais.
Late Wednesday, the company presented the general terms of its extrajudicial recovery plan, mostly in line with expectations.
Besides confirming a capital injection from Shell SHEL.L, a controlling shareholder, and possibly from Chairman Rubens Ometto, the proposal foresees the conversion of 45% of restructured debt to equity, with the remaining 55% converted to new debt.
According to people close to the discussions, groups of creditors and bondholders are now deciding whether to support the plan, with the company aiming to file it possibly by June 3.
In March, Raizen said it had reached an out-of-court agreement with certain creditors and bondholders to restructure approximately 65 billion reais in debt obligations, pending wider support and agreement on the final plan terms.
Then, the company said that creditors holding 47% of its unsecured debt had endorsed the restructuring.
Raizen declined to comment on its next steps.
     
($1 = 5.0306 reais)

(Reporting by Luciana Magalhaes
Editing by Rod Nickel)
((Luciana.NovaesMagalhaes@thomsonreuters.com;))