Brazilian sugar‑and‑ethanol giant Raizen SA struck a $13 billion out‑of‑court restructuring deal with most of its creditors, a move that signals a fresh push to trim debt after years of financial strain. The agreement, reached quietly in São Paulo, resolves long‑standing payment disputes and replaces older, higher‑interest obligations with new terms that lower the company’s leverage for the next fiscal year period and help cash flows improve.

By swapping high‑cost debt for longer‑term, lower‑interest instruments, Raizen aims to free cash and stabilize earnings that have been pressured by volatile commodity prices and tightening credit conditions. The deal reflects the company’s broader strategy to consolidate its balance sheet, sharpen operational focus, and position itself for future growth in Brazil’s competitive biofuel market in the upcoming seasons and maintain.

Creditors, who hold a substantial portion of Raizen’s outstanding debt, welcomed the settlement as it provides clearer repayment timelines and reduces uncertainty for investors. The agreement could set a precedent for other Latin American energy firms facing similar debt loads. With the restructuring complete, Raizen’s board will now focus on executing its expansion plans and improving shareholder value for shareholders.