In just over three weeks, troubled Brazilian waste management company Ambipar Participações e Empreendimentos SA went from reassuring investors to the verge of filing for bankruptcy.
Ambipar, which offers services ranging from hazardous waste disposal to soil remediation in more than 40 countries, had seen its dollar bonds steadily fall as compliance investigations, rating warnings and governance issues piled up. In mid-September, it decided to expand its board of directors and restructuring committees, in an effort to convince investors that it was getting back on track.
But everything went wrong. Along with the changes, executives said they hired a consultant to look at liability management, which spooked traders. So, the financial director, João Arruda; the director of investor relations, Pedro Borges Petersen; and global legal director Mauro Nakamura left within days of each other. Bonds plummeted.
The liquidation created another problem for Ambipar. The notes were part of a financing agreement with Deutsche Bank. As they fell apart, the company had to contribute more and more to continue meeting margin calls. When faced with the last request—for only US$11.2 million—he relented.
At the end of last month, Ambipar sought emergency protection from a Rio de Janeiro court, alleging that payment demands could trigger cross-default clauses on its roughly $1.8 billion debt. The rush was such that its presentation on September 25 was riddled with errors. One page even mentioned a completely different company.
Investors were stunned, confused by how the company could suddenly have a liquidity crisis when it reported a hefty cash balance of 4.7 billion reais in the second quarter of 2025.
Ambipar declined to comment and Deutsche Bank did not immediately respond to requests for comment.
“The collapse of Ambipar bond prices reflects a classic governance crisis in emerging markets,” said César Fernández, partner at Alpha Credit Advisors Ltd. “Investors lost confidence in the company due to the lack of transparency and poor communication with the market.”.
Although the order granted by the judge lasts 30 days—and can be extended for another 30—,The company is already working to file for a so-called judicial recovery as soon as next week, people familiar with the matter said.
