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Brazil's Raízen wants to bid for Shree Renuka ethanol mill - sources
August 24, 2017 / 8:10 PM / a month ago

Brazil's Raízen wants to bid for Shree Renuka ethanol mill - sources

SAO PAULO (Reuters) - Brazil’s Raízen Energia SA is interested in bidding for an ethanol mill owned by the Brazilian subsidiary of India’s sugar producer Shree Renuka Sugars Ltd (SRES.NS), which will be auctioned in early September, two sources with knowledge of the matter said.

Raízen, which is a Brazilian joint venture between Cosan SA Industria e Comércio (CSAN3.SA) and Royal Dutch Shell (RDSa.L), made a late request to join the auction and would have to receive a special authorization from creditors to bid, the sources said, asking to remain anonymous as they are not authorized to discuss the matter publicly.

The mill is being sold as part of an in-court debt restructuring, and the deadline to submit documents to join the auction was Aug. 10. Renuka’s Brazil subsidiary filed for bankruptcy protection two years ago to renegotiate 2.7 billion reais ($859 million).

Creditors would have to approve a new deadline to bidders and delay the auction date, one of the sources said. The auction is scheduled for Sept. 4.

Raizen did not immediately return a request for comment. Renuka’s Brazil unit declined to comment.

Reuters reported on Aug. 11 that Chinese commodities trader COFCO Corp has registered to take part in the auction. COFCO already owns four sugar and ethanol plants in Brazil capable of processing a combined 15 million tonnes of cane per year.

Reporting by José Roberto Gomes and Tatiana Bautzer; Editing by Cynthia Osterman

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