Key facts
- IG4 Capital has submitted non-binding offers to acquire debt and control of Raizen.
- Raizen is a Brazilian sugar and ethanol producer undergoing a significant debt restructuring.
- IG4 Capital recently became a co-controller of petrochemical producer Braskem.
- Creditors accepted Raizen's debt-to-equity conversion but prefer not to remain shareholders.
- The acquisition's success hinges on IG4's proposed conditions.
Private equity firm IG4 Capital has submitted non-binding offers to acquire debt and control of Brazilian sugar and ethanol producer Raizen. This move follows IG4's recent co-control acquisition of petrochemical producer Braskem alongside Petrobras. Raizen recently announced a 65 billion reais ($12.7 billion) debt restructuring, the largest out-of-court restructuring on record in Brazil. Advisers to Raizen's creditors, Moelis & Company and Journey Capital, received IG4's offers. Creditors accepted Raizen's debt-to-equity conversion but would prefer to exit their shareholder positions, making the success of IG4's proposal contingent on its offered conditions. IG4 typically seeks control or co-control of its acquisitions and would likely proceed only if it secures at least 50% plus one of the restructured credits.