A group of bank creditors to Raízen SA has retained FTI Consulting Inc. as an adviser as the Brazilian sugar and ethanol producer struggles with its debt burden, according to people familiar with the matter. The move signals mounting concerns among lenders about the company's financial health amid challenging market conditions for the biofuels sector. Raízen, a joint venture between Shell and Brazilian conglomerate Cosan, has been grappling with lower ethanol prices and reduced sugar production.

FTI Consulting's appointment comes as creditors seek to assess their options and potentially restructure Raízen's debt obligations. The Brazilian company, one of the world's largest sugar and ethanol producers, has seen its financial position deteriorate due to a combination of factors including adverse weather conditions, fluctuating commodity prices, and operational challenges. The involvement of FTI suggests creditors are preparing for possible debt restructuring discussions or other financial remedies.

The engagement of FTI Consulting underscores the severity of Raízen's financial challenges and the growing pressure on the company to address its debt situation. With Brazilian ethanol producers facing headwinds from both domestic and international markets, Raízen's struggles reflect broader industry pressures. The outcome of these creditor discussions could have significant implications for the company's future operations and the broader Brazilian biofuels sector.