Raízen secures $1.6B tax-debt discount in major restructuring agreement
In Brazil, Agribiz reports Raízen has secured an R$8.5 billion reduction in tax-related penalties and interest through an agreement with Brazil’s National Treasury Attorney General’s Office and Federal Revenue Service. The settlement covers R$22.4 billion in tax liabilities, of which R$16.7 billion is attributed to Raízen itself and R$5.7 billion to its controlling shareholders, Shell and Cosan. Following the discount, Raízen’s remaining R$8.2 billion liability will be settled using R$5.7 billion in accumulated tax losses and R$2.5 billion in cash. The agreement is a key condition for implementing the company’s broader R$65 billion (approximately US$12.6 billion) out-of-court debt restructuring. The settlement does not yet clarify how the shareholders’ separate R$5.7 billion liability will be paid.
Category: Fuels
