By Brazil Stock Guide – Shares of Ambipar Participações e Empreendimentos S.A. (B3: AMBP3; NYSE: AMBP) staged a strong recovery on Monday (29), rising about 20% on the B3 in afternoon trading, after investors embraced the view that the company’s financial crisis stemmed from misguided decisions by former CFO João Arruda, rather than structural weaknesses in the business. Since securing court protection from creditors last Thursday (25), Ambipar’s stock has already gained 120% following a steep selloff. The shares closed Monday at R$10.75.
Arruda, who had previously advised Ambipar while at Bank of America, later became the company’s CFO and reshaped the hedge strategy for its US$750 million green bond issuance in 2024. In the role, he shifted swaps to Deutsche Bank and, in August 2025, added a Payment-in-Kind (PIK) clause to the contracts, tying collateral requirements to the secondary-market performance of the bonds. What was intended to mitigate risk instead drained liquidity and worsened the crisis.
Ambipar has already hired BR Partners as financial adviser to map out its debt and design a restructuring plan, according to O Globo.
The company secured a court injunction in Rio de Janeiro halting debt enforcement actions for 30 days, renewable for another 30. The request came after Deutsche Bank demanded collateral tied to a US$35 million loan, which could have accelerated as much as R$10 billion in obligations with financial institutions.
Market confidence returns
Despite the severity of the situation, investors reacted positively to the interpretation that the crisis was triggered by a one-off management error rather than by weaknesses in the company itself. The stock rally reflects a combination of factors: Arruda’s departure, the arrival of Seneca Evercore to lead negotiations, temporary court protection, and expectations for a robust debt-restructuring plan.