Raízen nears deal with creditors to start extrajudicial recovery

Raízen is close to reaching an agreement with its main creditors to initiate an extrajudicial recovery plan. An agreement with bondholders may be reached this week, according to sources. The company is in talks with banks and has reduced hedge positions that were built to honor dollar-denominated debts as talks progress. Cosan, Raízen's controlling shareholder, is no longer in talks with Shell to rescue the company. Raízen plans to enter an extrajudicial restructuring process while seeking a solution to its debt problems.