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Bloomberg reports that Raizen offers creditors alternative terms for debt restructuring

Bloomberg News reported that Brazilian sugar and fuel company Raizen has sent a 'alternative proposal' to its creditors in order to hammer out the terms of a debt restructuring worth 65 billion reals ($13.05 billion).

Reports citing sources familiar with the matter said that the company has told its creditors that it is in discussions to raise as much as 5 billion reais of new capital.

Bloomberg reported that the proposed capital raising would be an addition to the 4 billion reais already pledged as funding by Shell and Rubens ometto, Cosan founder and controlling shareholder. The source of additional funds is unclear.

According to a report, the Brazilian?conglomerate Cosan that controls Raizen jointly with Shell does not inject cash into the company.

Raizen has refused to comply with creditor demands to give up majority board seats, or to hold executives responsible for future liabilities. However, it has agreed to establish a "creditors committee" to improve governance oversight.

Could not verify the report immediately. Cosan and Raizen did not respond immediately to an?outside of business hours?request for comment. Shell refused to comment.

After a period of heavy capital spending, unfavorable climate and wildfires which reduced harvests and cane crushing volumes, Raizen has struggled to manage its debts.

It is not clear how long the current discussions will last. (Reporting and editing by Bill Berkrot in Bengaluru)

(source: Reuters)