Owner of Shell stations in Brazil tries to reorganize debt worth R$64.7 billion and gains support from creditors

Fuel prices displayed at a Shell gas station in Copenhagen, Denmark
Reuters
Filling up your car at a Shell station, buying ethanol or consuming sugar produced by Raízen are common situations for millions of Brazilians. Now, the company, one of the largest in the country's energy sector, is trying to turn the page on a billion-dollar debt.
Raízen announced this Friday (5) that it has obtained the support of most of its creditors to move forward with a financial restructuring plan that involves around R$64.7 billion in debt.
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The proposal foresees new contributions from shareholders, changes in payment terms and even the conversion of part of the debts into equity participation.
The objective is to alleviate the pressure on the company's cash flow and create conditions for the company to grow again in the coming years without compromising its operations.
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Under the plan, Shell will make a contribution of R$3.5 billion in the company. Furthermore, 45% of the debts included in the extrajudicial recovery will be converted into company shares, while the remainder will have payment terms renegotiated.
The strategy also foresees a structural transformation. By the end of 2027, Raízen intends to separate its businesses into two independent companies: one focused on the production of sugar, ethanol and bioenergy and the other dedicated to the distribution of Shell brand fuels and lubricants.
According to the company, the extrajudicial recovery is exclusively financial in nature and does not affect commitments with customers, suppliers, resellers or consumers.
How Raízen ended up with a billion-dollar debt
Raízen filed for extrajudicial recovery in March this year to renegotiate around R$65 billion in financial debts.
Extrajudicial recovery is an agreement in which the company renegotiates part of its debts directly with some creditors, without the mediation of the Court. The objective is to obtain more time or better payment conditions to reorganize finances and avoid more serious problems, such as bankruptcy.
The company, which operates in the sugar, ethanol and fuel distribution sectors, had been facing strong pressure on its cash flow after years of high investments, high interest rates, harvests affected by adverse weather conditions and a drop in the performance of part of its business.
At the end of 2025, the company's net debt had reached R$55.3 billion. In the same period, the company recorded a loss of R$15.6 billion, impacted by accounting losses related to the revaluation of assets.
⛽ Raízen was created in 2011 as a joint venture between Cosan and Shell, combining Cosan's sugar and ethanol production operations with Shell's fuel distribution network in Brazil.
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Source: G1