*

Ambipar faces cash crisis, risk of accelerated debt

repayment

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U.S. subsidiary files for Chapter 11 bankruptcy in Texas

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Shares lose almost 96% this year, removed from Brazil's B3

indexes

(Rewrites headline and paragraph 1 with global context on

corporate credit, adds details and context on Ambipar and market

throughout)

Oct 21 (Reuters) - Ambipar and its

U.S.-listed subsidiary have filed for bankruptcy protection

after a turbulent period for the Brazilian waste management

firm, adding to mounting concerns over corporate credit.

The subsidiary, Ambipar Emergency Response ( AMBI ), filed

for Chapter 11 protection in Texas, according to a court filing

late on Monday, and listed estimated assets between $1 billion

and $10 billion, with liabilities between $100 million and $500

million.

The bankruptcy move follows a cash crunch and the risk of

accelerated debt repayments worth billions of reais.

According to Monday's filing, the Bank of New York Mellon ( BK )

, acting as trustee for bondholders, has listed unsecured

claims of about $328 million tied to Ambipar's 2031 and 2033

green bonds.

In a filing with the U.S. Securities and Exchange

Commission, the unit said that its parent has filed a request

for judicial recovery with the Third Business Court of the

Capital of Rio de Janeiro.

The company did not respond to a Reuters request for comment

outside regular business hours.

Ambipar's stock plunged in September after the company

secured a preliminary injunction from a Rio de Janeiro state

court to temporarily prevent the accelerated maturity of its

debt.

The court ruling, seen by Reuters, came amid a dispute with

Deutsche Bank, which had demanded additional

guarantees for loans to the company.

Ambipar, whose stock has lost nearly 96% of its value so far

this year, was removed from all indexes of Brazil's main stock

exchange operator, B3, earlier this month, due to governance

issues.

Last month, the company also hired investment bank BR

Partners as an adviser amid growing concerns about

its leverage ratio.

CREDIT WORRIES

Ambipar said the bankruptcy was the result of a "sequence of

events that followed the discovery of evidence of irregularities

in the contracting of swap transactions by the Finance

Department and the abrupt resignation of the former CFO,"

according to a Bloomberg report.

The report also said that the events "shook market

confidence in the Ambipar Group and prompted some creditors to

request changes in debt maturity, putting at risk the group's

ability to handle its obligations".

The news outlet was the first to report on the bankruptcy.

A series of corporate debt troubles has rattled the market

in recent weeks, led by the bankruptcies of auto parts retailer

First Brands and subprime lender Tricolor.

While several analysts have described the cases as

idiosyncratic and stemming from lapses in risk controls,

investor sentiment has been fragile.

Tensions in corporate credit markets can ripple rapidly

through global debt markets, amplifying risk aversion and

tightening funding conditions.

JPMorgan Chase ( JPM ) CEO Jamie Dimon said earlier this

month that there are likely more "cockroaches" in the credit

market in reference to the auto bankruptcies and cautioned that

more troubles may emerge ahead.

Further high-profile credit blowups could undermine

investor confidence globally if they involve large financial

institutions or suggest that cracks in the credit market run

deeper than expected.