Brazil's Raizen reaches deal for out-of-court debt restructuring, O Globo reports

Local newspaper O Globo on Tuesday reported that Brazilian sugar and ethanol producer Raizen had reached an agreement?with bondholders and creditors?for a?debt restructuring?out of court.

O Globo reported that the agreement would be announced on Tuesday evening, but did not cite a source. Raizen's debt is financed by creditors and bondholders, who represent about 40% of the total. It said that the deal doesn't affect suppliers.

Raizen has declined to comment.

The company said that it would be analyzing Shell's proposal for a capital injection of 4 billion reals ($774.61 millions) and indicated that the solution to its debt problems could be achieved through an out-of court restructuring process.

Raizen, the joint venture between Cosan and Shell, has been in discussions with its creditors and shareholders about how to strengthen their capital structure and reduce debts worth 'billions of dollars'.

The net debt of the country reached 55.3 billion reais by the end of December, due to a combination of increased investment spending, erratic climate and 'wildfires' that affected harvests as well as reduced cane crushing volumes. ($1 = 5,1639 reais). (Reporting and editing by Tom Hogue, Daina Beth Solon, Fernando Cardoso. Additional reporting by Andre Romani.

(source: Reuters)