Ambipar followed the script expected by the financial market and filed for judicial reorganization (RJ) in the 3rd Business Court of Rio de Janeiro, claiming to have debts of nearly R$ 11 billion.
Ambipar Emergency Response, based in the Cayman Islands and whose shares are traded on the New York Stock Exchange, has also filed for Chapter 11 bankruptcy protection in the US, the equivalent of judicial reorganization, with the Texas Bankruptcy Court.
The move was expected after Ambipar obtained a precautionary injunction on September 25, a strategy known to prepare for judicial reorganization.
In its bankruptcy filing, the company alleges the discovery of evidence of irregularities in swap transactions carried out by the finance department and a loss of market confidence, resulting in requests for early repayment of debts and the risk of cross-default.
The largest creditor is the holders of Ambipar bonds. But the company has debts with debenture holders, banks, and suppliers. Among the banks, the largest is Santander, with R$ 663 million. Next are Banco do Brasil (R$ 352 million), Banco do Nordeste (R$ 207 million), Deutsche Bank (R$ 188 million), and Bradesco (R$ 165 million).
In its bankruptcy filing, Ambipar submitted a management report detailing its current cash flow, kept confidential. One of the major questions in the market is how Ambipar, which in the second quarter of this year claimed to have R$ 4.7 billion in cash and financial investments, with more than R$ 2 billion readily available, cannot possibly have the funds to meet its obligations?
This amount would be enough to cover the additional collateral required by Deutsche Bank for a $35 million loan. But apparently, the money has "disappeared." Part of the money is believed to be in an FDIC account.
The trigger for Ambipar's financial crisis is related to an addendum signed with Deutsche Bank. Ambipar has pointed to its former CFO, João Arruda, as responsible for the "disastrous addendum" in clarifications presented to the Rio de Janeiro Court of Justice (TJ-RJ).
According to Ambipar's version of events, Arruda allegedly transferred swap contracts from Bank of America (BofA) to Deutsche Bank and negotiated the addendum with the German bank "without the prior knowledge – and even less authorization – of the board of directors."
Documents, however, pointed to a different version. A copy of the addendum contract, previously obtained by NeoFeed , shows the signature of Thiago da Costa Silva, director of integration and finance, and Luciana Freire Barca Nascimento, deputy director, whose role is to assist "the CEO in his duties".
Both are linked to the controller and CEO Tércio Borlenghi Junior. Arruda's signature is not on the document, but sources say he was aware of the agreement.
Ambipar even went so far as to open a police investigation against Arruda, in which it requests an investigation into evidence of the crimes of falsifying documents, fraud, and abuse of power allegedly committed by the former CFO.
At the time, David Rechulski, coordinator of Arruda's legal defense, contacted by NeoFeed , said that this was "yet another erratic move" by Ambipar and that it was clear "we were facing a likely typical case of malicious denunciation."
"Incidentally, so that there are no doubts from the outset, there are even messages from the controlling shareholder, CEO, and member of the Board of Directors, Mr. Tércio Borlenghi Junior, sent to his former CFO, João Arruda, celebrating the signing of the addendum with Deutsche Bank, which they now claim is something unknown," says an excerpt from the statement sent. "False narratives will not withstand the evidence."
Ambipar is worth R$ 968 million. This year, its shares have fallen 95%.
