Mayer Brown advises on Raízen BRL 64.7 billion debt deal

Mayer Brown advised an ad hoc group of 18 financial institutions in connection with the approximately BRL 64.7 billion extrajudicial reorganization (recuperação extrajudicial) of Brazil-based sugar, ethanol, and bioenergy producer Raízen S.A., one of the largest restructurings ever undertaken in Brazil.

Raízen announced that it secured support from creditors holding approximately BRL 51.9 billion of the claims subject to the restructuring plan, representing over 80% of the covered indebtedness and exceeding the applicable legal threshold required to proceed with the extrajudicial reorganization.

Mayer Brown represented lenders holding approximately $6 billion of debt in connection with the evaluation and negotiation of the extrajudicial reorganization plan, which Raízen filed in São Paulo in June 2026. The plan contemplates a combination of new debt instruments and an equity conversion mechanism, under which a portion of the restructured debt may be converted into equity, with the balance to be rolled into new financial instruments. The plan is expected to proceed through the court confirmation process in accordance with Brazilian insolvency law.

The engagement involved a complex cross-border strategy, drawing on Mayer Brown’s restructuring and leveraged finance capabilities across New York and Brazil, and addressing a range of instruments, including revolving and bilateral credit facilities, trade facilities, bonds and derivative positions.

The Mayer Brown team was led by Restructuring partners Joaquin C. de Baca, Liv Machado, and Richard Stieglitz; Banking & Finance partners Scott Zemser and Eduardo Lima; and Litigation partner Richard Spehr.