Raízen Creditors Propose R$8 Billion Injection and Rubens Ometto's Departure, Sources Say

Bondholders of Raízen, the Brazilian company, have presented a new restructuring proposal that includes a capital injection of approximately R$8 billion (US$1.6 billion), according to sources familiar with the matter who spoke to Bloomberg News. These sources, requesting anonymity due to the private nature of the discussions, also stated that creditors are demanding the replacement of Rubens Ometto, founder of parent company Cosan, as Raízen's board chairman as part of the restructuring agreement. Raízen, Cosan, and Ometto all declined to comment on the matter. Earlier this month, sources indicated that creditors are seeking a greater say in the management of the biofuels giant, as they are poised to become significant shareholders through a potential debt-for-equity swap. They are requesting up to a 90% stake in the company in exchange for 45% of its debt as part of the restructuring. However, this new proposal is likely to encounter resistance. Sources noted that during high-stakes meetings in New York last week, controlling shareholders Shell and Cosan resisted demands for additional funds. Shell declined to comment. Raízen filed for an out-of-court restructuring in March, facing R$65 billion in debt. Since then, the company has been negotiating with creditors to reach a broader agreement and avoid seeking bankruptcy protection. The parties are now facing a legal deadline of June 6 to finalize a resolution.