BNP, Bradesco, and Rabobank Emerge as Notable Creditors of Raízen

Raízen SA Debt Restructuring Plan

Summary

Raízen SA, a Brazilian sugar and ethanol company owned by Shell Plc and Cosan SA, is seeking to restructure approximately $12.6 billion of debt out-of-court. The company has agreed to suspend payments and give itself 90 days to secure the buy-in of creditors on a comprehensive plan.

Key Creditors

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The largest creditors of Raízen include:

• BNP Paribas: 4.2 billion reais ($810 million)
• Banco Bradesco SA: 2 billion reais
• Coöperatieve Rabobank: 2 billion reais
• Banco Santander SA: 2 billion reais
• Sumitomo Mitsui Banking Corp.: 2 billion reais
• Itau Unibanco Holding SA: over 1 billion reais
• Bank of New York Mellon: approximately 26 billion reais (equivalent)
• True Securitizadora: 6.4 billion reais

Restructuring Plan

Raízen's debt restructuring plan may involve additional capital contributions from its owners, the conversion of some debt into equity, or the sale of assets. The company has a total debt of 65 billion reais.

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Company Background

Raízen, once Brazil's leading biofuels producer, has been affected by high interest rates, weak harvests, and heavy investments that have yet to pay off. Its dollar-denominated bonds have slumped into distressed levels, and its ratings have been slashed deep into junk grade.