Bloomberg: Raízen Creditors Seek Management Adjustments in Debt Restructuring Counterproposal

Brazilian biofuel giant Raízen and its creditors are reportedly working on a new restructuring proposal for the company's substantial R$65 billion (approximately US$12.5 billion) debt. This development follows a week of intense meetings held in New York, according to sources familiar with the matter who spoke to Bloomberg News. Creditors are seeking to exert greater influence over how the company is managed. This push for more control stems from the likelihood that they will become significant shareholders through a potential debt-to-equity conversion. However, during the meetings, Raízen's controlling shareholders, energy major Shell and Brazilian conglomerate Cosan, resisted pressure from creditors to commit to injecting more capital into the company. Despite this, London-based Shell had previously agreed in March to contribute R$3.5 billion during the restructuring process, while Cosan founder Rubens Ometto pledged an investment of R$500 million. The request for a new proposal was initially reported by the newspaper O Estado de S. Paulo. Negotiations are expected to continue in the coming days as parties race to finalize a plan that can secure support from the majority of bondholders and banks, sources indicated. While a counterproposal from creditors is anticipated this week, there is no formal deadline, and the structures of the agreement could still evolve. All parties involved face a legal deadline of June 6 to reach an out-of-court settlement. The increasing pressure for changes in governance also reflects the creditors' growing concern and interest in the company's future direction.