Overview

• Ambipar is assessing whether to file for restructuring in Brazil alone or also pursue U.S. court protection, with a decision expected within about 30 days, according to the latest report.
• Options under evaluation include a Chapter 11 filing in the U.S. or a Chapter 15 process to run alongside a Brazilian case because significant debt and guarantees are tied to U.S. arrangements.
• An internal audit is examining a $35 million Deutsche Bank loan amendment allegedly signed without board approval that tied in derivatives and green bonds and could trigger cross-defaults of up to R$10 billion.
• S&P downgraded Ambipar’s global rating to D after a Rio court injunction halted creditor executions and suspended acceleration clauses, calling the measure equivalent to a general debt restructuring.
• Fitch cut the company’s local and foreign currency ratings to C and its national rating to C(bra), described the injunction as similar to default, and said a formal plan would prompt RD or D if judicial reorganization is filed.