Raízen Faces Financial Crisis Amid Doubts About Support from Cosan and Shell

Raízen SA's bond prices have fallen sharply amid concerns that its two major shareholders, Cosan SA and Shell Plc, may not cover a deficit of nearly $4,000 million. Raízen and its advisors are exploring possible scenarios, including debt restructuring, asset separation, equity issuance, and capital injection. Shell has avoided injecting additional capital to avoid consolidating Raízen's debt on its own balance sheet. Cosan is struggling to reorganize after acquiring Vale SA's shares, and its resources from a recent capital increase will not be used to capitalize Raízen, as Cosan needs them for itself.