Raízen Proposes Debt Restructuring Plan Involving Large Equity Stake for Creditors

Brazil’s Raízen SA has outlined a debt restructuring proposal that would convert a significant portion of its $12.6 billion debt into equity, granting creditors a major stake in the company. The plan includes a five-year grace period and will be discussed in upcoming New York meetings.

• Raízen proposes to restructure $12.6 billion in debt with a five-year grace period.
• At least 45% of the debt would be converted into equity.
• Creditors could end up with up to 70% of Raízen’s ordinary shares if the stock is priced at 40 centavos.
• The stock is currently trading at around 50 centavos.
• The proposal will be discussed in New York next week.