Brazil's Raízen Granted Largest Out-of-Court Restructuring in Brazilian History

A São Paulo court approved Raízen's out-of-court restructuring request on Thursday afternoon, October 12. This marks the largest corporate restructuring case in Brazil's history. Raízen had filed the request on Wednesday, October 11, aiming to secure a safer legal environment for negotiating and reorganizing its financial debts, which total 65.1 billion Brazilian Reais. The company explicitly stated that its suppliers would not be affected by this restructuring. According to the court's decision, Raízen now has 180 days to seek a solution to its crisis with its group of creditors. Judge Guilherme Lamêgo of the 3rd Court of Bankruptcy and Judicial Restructuring suspended all collection actions, executions, attachments, and other constraints against Raízen for six months to facilitate negotiations. In a material fact signed by CFO and Investor Relations Director Lorival Nogueira Luz Jr., Raízen confirmed that this 180-day suspension applies to all actions and executions against the company related to the credits covered by the out-of-court restructuring, including the suspension of the enforceability of principal, interest, and other charges during this period. Furthermore, the court granted Raízen 90 days to demonstrate that it has reached the quorum required for the approval of its out-of-court restructuring plan.