Raizen proposes alternative terms to creditors for debt restructuring, Bloomberg reports

April 26 (Reuters) - ​Brazilian fuel and sugar company Raizen sent an alternative proposal to creditors ​as it ‌tries to iron out terms of a 65 billion-real ($13.05 billion) debt ⁠restructuring, Bloomberg News reported on Sunday.

The ⁠company told creditors ​it is in talks to raise up to 5 billion reais in fresh capital, the report added, citing people familiar with ​the matter.

The proposed ‌capital raise would be in addition to 4 billion reais in funding already pledged by Shell and Rubens Ometto, Cosan's founder and controlling shareholder, Bloomberg reported, adding that the ​source of the additional funds was unclear.

Brazilian conglomerate Cosan, which ‌jointly controls Raizen with Shell, is not injecting cash into the company, according to the ‌report.

Raizen is resisting creditor demands that shareholders surrender a majority of board seats or that executives be held responsible for potential ​future liabilities, but has agreed to set up a creditors' committee to ‌strengthen governance oversight, the report added.

Reuters could not immediately verify the report. Raizen, Cosan, and Shell declined to comment.

Raizen has struggled ⁠with ⁠managing its debts after a period of ‌heavy capital spending, unfavorable weather and wildfires that hurt harvests and reduced cane-crushing ​volumes.

The company ​has less than two months to ‌gain final approval for the proposed restructuring, but it is unclear how long current talks will take. ($1 = 4.9795 reais) (Reporting by Ruchika Khanna in Bengaluru; Editing by Bill Berkrot)

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