Raizen creditors tap Journey Capital, Felsberg as advisors, sources say (updated)

Cosan

28/04/2026 16:08

Adds context and information about Raizen's debt-to-equity negotiations with creditors in paragraphs 6-10

By Luciana Magalhaes

SAO PAULO, April 28 (Reuters) - A group of holders of local fixed-income debt issued by Brazilian sugar and ethanol firm Raizen RAIZ4.SA has tapped financial advisory company Journey Capital and law firm Felsberg for representation in the company's restructuring process, according to three people familiar with the matter.

Two of the people said the group holds about 14 billion reais ($2.81 billion) in debt issued by Raizen.

In a statement, Journey confirmed the hiring. Felsberg and Raizen declined to comment.

Earlier this month, Raizen began talks to convert debt into shares, a move that is key to securing support for an out-of-court agreement announced last month between the world's largest producer of sugar and cane-based ethanol and its bondholders and creditors holding about 65 billion reais of outstanding debt.

Last February, Reuters reported that Raizen, a joint venture between Shell and Cosan, had appointed law firms Pinheiro Neto and Cleary Gottlieb as legal advisers and Rothschild & Co as financial adviser to address its financial difficulties.

The company has about a month and a half to gain final approval for the proposed restructuring.

Raizen and its creditors are discussing the volume and terms of the debt-to-equity conversion. There is also a push for a larger capital injection from Raizen's shareholders.

Earlier this year, Shell
committed to investing
 3.5 billion reais to support Raizen, but Cosan, which faces its own financial challenges, has been unable to commit as much. Chairman Rubens Ometto has also agreed to invest 500 million reais.

A fourth person involved in the talks said local and international creditors would like shareholders to at least double their capital injection into the company. This person and the three others said there are also discussions regarding the future role of Ometto, a founder of Cosan, at Raizen, as he will likely be substantially diluted by the debt-to-equity conversion.

Cosan and Ometto declined to comment.

($1 = 4.9854 reais)

 (Reporting by Luciana Magalhaes, Additional reporting by Oliver Griffin, Editing by Franklin Paul)

 ((Luciana.NovaesMagalhaes@thomsonreuters.com;))