Court Keeps Rio’s Provisional Jurisdiction in Ambipar Case, Upholds Protective Measures

By Brazil Stock Guide – The Rio de Janeiro Court of Justice (TJ-RJ) has decided to maintain, on a provisional basis, its jurisdiction over the judicial-reorganization proceedings of the Ambipar Group. The ruling, issued on Monday (27) by the 21st Civil Chamber, also preserves the precautionary measures that prevent the early maturity of debts, the termination of essential contracts, and the freezing of the company’s assets.

The presiding judge acknowledged evidence suggesting that Ambipar’s largest business volume is based in Rio de Janeiro—with revenue of R$303.2 million, compared with R$69.4 million in São Paulo—but chose to keep jurisdiction in Rio until the adversarial phase concludes.

The decision provisionally upholds the earlier injunction suspending cross-default clauses (except for swap contracts) and prohibiting the enforcement of guarantees or judicial seizures against the group. It also bars suppliers from cutting off essential goods and services or terminating contracts due to the reorganization filing.

The court further recognized the existence of an economic group and the possibility of substantive consolidation under Brazil’s Bankruptcy and Reorganization Law (LRF). According to the ruling, Ambipar demonstrated cross-guarantees and an interlinked corporate structure, justifying the unified treatment of its liabilities. “The difficulty of isolating the obligations among subsidiaries is precisely the reason to admit joint standing,” the decision states.

Another key point reaffirms that credits secured by fiduciary assignment of receivables are not subject to judicial reorganization, except when they involve capital goods essential to the company’s operations. The court cited precedents from the Superior Court of Justice (STJ) defining this exception, allowing banks to maintain “bank lock” rights over receivables while ensuring the company’s access to productive assets necessary to continue operations.

The ruling does not constitute a final approval of Ambipar’s reorganization plan, but it ensures operational continuity and maintains the stay period until the court determines jurisdiction and rules on the merits of the protective measures. “Given the urgency of the pending issues and in the interest of procedural efficiency, the decision is rendered on a provisional basis,” the judge concluded.