Raízen Moves Forward with Major Restructuring Amid Debt Crisis
Raízen has secured approximately 80% creditor support for a restructuring plan involving 65 billion reais ($13 billion). This will split the company into two entities by 2027, altering ownership dynamics significantly.
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Raízen has received backing from around 80% of creditors for a restructuring plan valued at 65 billion reais ($13 billion). The plan involves a significant shift of ownership, where creditors will convert a substantial portion of their debt into shares, resulting in them controlling most of the company post-restructuring.
Shell will invest about 3.5 billion reais ($700 million) to strengthen its position as the dominant owner, while Cosan's stake will diminish substantially. The restructuring aims to split Raízen into two separate companies by 2027: one focusing on fuel distribution and the other on sugar and bioenergy operations.
This separation is intended to enhance valuation, management, and potential sale prospects for each entity. The restructuring plan is awaiting court approval in São Paulo, with execution expected to continue through 2027.
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