Ambipar Seeks Judicial Recovery in Rio After Derivatives Dispute Triggers Liquidity Crunch

Overview

• The company filed for judicial recovery in the Rio de Janeiro court, listing about R$10.48 billion in liabilities and citing the need to preserve operations.
• Ambipar says guarantee calls linked to a US$35 million loan and amended currency hedges triggered cross-default risks, and it opened a criminal inquiry into alleged irregularities by its former CFO, which his defense denies.
• Judge Fábio Henrique de Toledo in São Paulo denied Deutsche Bank’s request to liquidate the derivatives in a pre-arbitration action.
• A Cayman-based unit, Ambipar Emergency Response, sought Chapter 11 protection in the United States, a measure limited to that subsidiary.
• Major creditor banks and the Rio state prosecutor moved to challenge the protective measures and the choice of Rio de Janeiro as the forum.