Creditors recently accepted Raizen’s proposal to convert debt into equity as the most viable path forward, yet many remain reluctant to hold long-term stakes in the company. The viability of the IG4 proposal now rests entirely on the specific financial conditions and exit terms offered to these existing stakeholders. According to sources familiar with the discussions, any final agreement remains distant, with creditors unlikely to reach a consensus in the immediate future.

IG4, fresh from securing a co-controlling interest in petrochemical producer Braskem alongside Petrobras, is known for aggressive pursuit of management control. To succeed in this latest bid, the firm will likely require at least 50% plus one of the newly restructured credits. Representatives from IG4, Moelis, and Journey Capital have declined to comment on the ongoing negotiations.