By Brazil Stock Guide – Raízen (RAIZ4), the Brazilian bioenergy and fuel distribution company controlled by Shell and Cosan (CSAN3), filed for extrajudicial recovery in São Paulo as part of a plan to restructure about R$65.1 billion in unsecured financial debt, according to a material fact disclosed by the company.
The restructuring was pre-negotiated with creditors representing about 47% of the affected claims, allowing the company to formally submit the plan under Brazil’s bankruptcy law. Once accepted by the court, Raízen will have up to 90 days to obtain the required creditor support needed to bind all affected claims to the new payment terms.
The plan may include a range of measures such as new capital injections from shareholders, conversion of part of the debt into equity, issuance of new debt instruments, asset sales and corporate reorganizations, including the possible segregation of certain business units, according to the company.
The restructuring comes as Raízen grapples with a large debt burden accumulated during years of aggressive expansion. The company holds gross debt of about R$72.4 billion, with net debt near R$55 billion, according to investor materials. The maturity profile shows significant refinancing needs in the coming years, with about R$45 billion of obligations falling due before 2030, increasing pressure on the balance sheet.
Over the past decade, Raízen positioned itself as one of the world’s largest integrated bioenergy companies, operating dozens of sugar-ethanol mills and one of Brazil’s largest fuel distribution networks. The strategy required massive capital expenditures, including acquisitions, logistics investments and expansion of industrial capacity.
But the rapid growth came at a cost. The company’s debt ballooned as financing conditions tightened and cash generation failed to keep pace with the scale of investment, pushing leverage higher and increasing pressure from creditors and investors for a credible deleveraging plan.
Discussions over how to stabilize the company have also exposed a strategic divide between its shareholders. According to people familiar with the matter, Shell has supported a capital increase of about R$3.5 billion to reinforce Raízen’s balance sheet and signal commitment to creditors.
Cosan, however — whose shareholder base includes investors with strong influence from BTG Pactual — has reportedly favored a more structural solution: splitting Raízen’s businesses, separating the ethanol and sugar production operations from the fuel distribution network.
Such a breakup could unlock value and allow each segment to pursue different financial strategies, but it would represent a significant shift from the integrated model that has defined Raízen since its creation in 2011.
Raízen said the extrajudicial recovery applies only to financial liabilities and will not affect obligations to customers, suppliers or operating partners, with the company continuing normal operations while negotiations with creditors proceed.
Raízen – Debt Maturity and Amortization Profile
| Year | Debt Maturity / Amortization | Notes |
|---|---|---|
| 2026 | ~R$ 8 billion | First wave of bank loans and short-term financial obligations |
| 2027 | ~R$ 10 billion | Includes international bonds maturing in 2027 |
| 2028 | ~R$ 12 billion | Significant refinancing pressure from bank and market debt |
| 2029 | ~R$ 7 billion | Mix of domestic capital market instruments and loans |
| 2030 | ~R$ 8 billion | Medium-term debt amortizations |
| After 2030 | ~R$ 27 billion | Long-dated international bonds maturing between 2031 and 2054 |
Total Gross Debt: ~R$ 72.4 billion
Net Debt: ~R$ 55 billion
Debt Due by 2030: ~R$ 45 billion
Read more: Cosan’s Raízen firewall
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