By Brazil Stock Guide — Raízen (RAIZ4) said it has filed its out-of-court restructuring plan with the 3rd Business Court for Bankruptcy and Judicial Reorganizations of São Paulo, after securing support from creditors representing 75.45% of the financial and unsecured claims covered by the proposal.
The plan covers approximately R$64.7 billion in restructured claims, excluding intercompany debt, and has support from international bondholders, local debt holders and banks.
Among the key measures, Shell will subscribe R$3.5 billion in new capital in cash at closing. Aguassanta Participações, linked to the family of Rubens Ometto, may subscribe an additional R$500 million if it decides to join the transaction.
The plan also provides for the conversion of 45% of the restructured claims into equity through units composed of one common share and one preferred share, at an issue price of R$0.50 per unit, equivalent to R$0.25 per share.
The remaining 55% of the claims will be replaced, refinanced or amended through new debt instruments, including new RSA and RESA notes.
Raízen also said the plan includes additional structural measures, such as asset segregation, progress on its divestment agenda and corporate reorganizations. The proposal also includes an option with a significant discount, as well as a cash-out alternative for smaller creditors, subject to an aggregate cap of approximately R$150 million.
The company said the out-of-court restructuring is strictly financial in scope and does not affect obligations to customers, suppliers, distributors or other business partners. The plan will now move to court confirmation, subject to a 30-day period for creditor objections.
Leave a Reply