The São Paulo court has homologated the R$65.14 billion extrajudicial recovery plan for Raízen S.A., a joint venture between Brazil’s Cosan (CSAN3) and Shell, marking the final judicial step in what is the largest out-of-court restructuring in the history of the Brazilian financial market. The decision removes a significant overhang of uncertainty for the sugar, ethanol, and fuel distribution giant, which initiated the process in March after facing high leverage and weak harvests. The plan's centerpiece is a major debt-to-equity swap, whereby creditors who adhered to the proposal will convert 45% of the restructured financial debt into new company units at an issue price of R$0.50 per unit, a considerable premium to Raízen’s recent share price (RAIZ4).