Overview

• Judge Leonardo Castro de Gomes of Rio’s 3rd Business Court granted a renewable 30-day injunction suspending executions and acceleration or amortization clauses against Ambipar.
• Ambipar attributes the stress to derivatives tied to its green bonds and a recent US$35 million Deutsche Bank loan, saying it has posted over R$200 million in guarantees and faced a new call of about R$60 million.
• The company’s filing warns that cross-default provisions could pull forward obligations of roughly R$10 billion, and the order serves as an official notice to creditors as court-appointed administrators help mediate.
• Shares were extremely volatile on B3, entering leilão after a pre-market sell order at a 49.49% discount, touching an intraday low of R$3.91, and closing down 24.24% at R$7.50.
• Ambipar says operations continue and it is negotiating with creditors, as S&P keeps its ‘BB-’ rating on negative watch and the company replaced its CFO earlier in the week.