Raízen is trying to close a financial restructuring agreement with creditors in early June to avoid filing for recuperação judicial, Brazil’s court-supervised corporate recovery process. The company, a joint venture between Shell and Cosan, is negotiating over more than R$65 billion in debt, roughly USD 13 billion at the R$5.04 exchange rate cited by Money Times.
The talks center on a recuperação extrajudicial, an out-of-court restructuring mechanism that lets distressed companies negotiate directly with creditors and later seek court approval for the deal. Poder360 says Raízen is working toward a June 8 deadline; Money Times reports the company has until June 9 to present a plan backed by 50% of creditors plus one.
What the Plan Proposes
Raízen told the market it had total debt of R$75.35 billion, with R$65.4 billion included in the extrajudicial recovery process, according to InfoMoney. The proposed package includes a R$3.5 billion capital injection by Shell, about USD 694 million, and a possible additional R$500 million from Aguassanta Participações, a holding linked to Rubens Ometto, Cosan’s controlling shareholder.
Shell said in a statement published by Poder360 that the process was “a prudent and necessary measure” to deal with Raízen’s financial challenges. The oil major said it was proposing the R$3.5 billion injection as part of a structural solution and would keep working with Raízen’s leadership and creditors to secure the company’s long-term future.
The main proposal would convert 45% of the restructured debt into Raízen shares at R$0.25 per share. InfoMoney, citing UBS BB analysts, said creditors could end up with about 83% of the company after the restructuring, equivalent to 72% of common shares.
Three Creditor Options
InfoMoney, citing XP Investimentos, said creditors are being offered three broad payment alternatives. Option A would split claims between equity and new long-term debt, with 45% converted into shares and 55% rolled into new debt tied to Raízen Combustíveis and Raízen Energia.
Option B would impose an 80% haircut and replace the remaining balance with long-dated debt maturing in 2047. Option C would offer immediate cash payment for smaller creditors, capped at 75% of the claim or R$9,750, within a total allocation limit of R$150 million.
The restructuring also foresees a possible split between Raízen’s energy and fuel businesses after closing. Creditors would gain board influence: InfoMoney reported that a seven-member board would include four members appointed by supporting creditors, including the chair, and three appointed by investor shareholders.
Market Pressure
Raízen’s preferred shares fell 19.04% on Brazil’s B3 exchange on May 28 after the company disclosed restructuring terms, closing at R$0.34, according to Poder360 and InfoMoney. The shares partially recovered the next day, rising 8.82%, while Cosan shares fell 3.04%, Poder360 reported.
The talks shifted after BTG Pactual-linked funds abandoned a possible direct R$5.5 billion investment in Raízen’s fuel operation, according to Poder360. BTG was not listed among Raízen’s creditors, but it led a separate R$10 billion capitalization of Cosan, with BTG, Perfin and Aguassanta taking 55% of Cosan’s capital after the operation.
Raízen is also selling assets to strengthen cash. Poder360 said the company has sold mills in Brazil and is negotiating operations in Argentina, including a refinery and a service-station network, in a transaction estimated at more than USD 1 billion. A Revista said the Argentine assets include roughly 1,000 Shell-branded stations and the Dock Sud refinery.
What Comes Next
Banks hold about 40% of Raízen’s debt, while the remaining 60% is spread among investors and holders of agribusiness receivables certificates, known in Brazil as CRAs, according to Poder360. Some creditors oppose a broader debt-for-equity conversion and prefer to preserve higher-yielding debt instruments.
Raízen filed for extrajudicial recovery on March 11, 2026. Poder360 says the company now has three paths: secure an agreement with creditors and shareholders, request more time for negotiations, or file for recuperação judicial.
The sources agree on the core direction of the plan: new money from Shell, possible support from Aguassanta, asset sales, and heavy dilution for existing shareholders. The unresolved question is whether enough creditors will accept the terms before the deadline.