SAO PAULO, March 11 (Reuters) – Brazilian sugar and ethanol producer Raizen said on Wednesday it has reached an out-of-court debt restructuring agreement with creditors and bondholders covering about 65.1 billion reais ($12.61 billion) in obligations.
Raizen, a joint venture between Shell and Brazilian conglomerate Cosan, had been in discussions for months seeking alternatives to strengthen its capital structure and address its high debt load.
The company had been facing mounting pressure due to a combination of elevated capital expenditures, unfavorable weather, and wildfires that damaged harvests and reduced cane crushing volumes.
Last week, Raizen signaled it could pursue an out-of-court restructuring to resolve its debt crisis.
($1 = 5.1639 reais)
(Reporting by Luciana Magalhaes; Writing by Gabriel Araujo)
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