Raizen's $13bn debt swap forces creditor equity conversion
The world's largest sugar-cane ethanol producer is testing whether Brazilian courts can force debt-for-equity swaps on unwilling creditors. Raizen's restructuring plan converts 45 percent of its R$65.4 billion debt pool into equity at R$0.25 per share, giving creditors roughly 83 percent of the company, as restructuring analysis confirms. Shares fell 19 percent after the plan's release, reflecting massive dilution even as Shell and Cosan inject R$4 billion of fresh capital. This sets up a landmark test of Brazil's extrajudicial recovery laws: can courts mandate equitization for dissenting lenders, or must holdouts be paid in cash?
Sources
- Shell-Cosan venture plunges 19% after Raizen sets out rescue plan — Riotimesonline
- Raizen Chapter 15 R98 billion Brazilian workout — Elevenflo
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