Brazilian court grants bankruptcy protection to Ambipar

SAO PAULO (Reuters) -A Rio de Janeiro court approved on Thursday Brazilian waste management company Ambipar's request for bankruptcy protection, the decision showed.

Ambipar said in a statement that the court decision is an "important step" toward its operational restructuring, as it allows the firm to preserve more than 23,000 jobs and implement measures to balance its finances.

According to the statement, the company's financial liabilities total approximately 10.5 billion reais ($1.94 billion).

The decision also initiates a 180-day stay period, during which all financial collections and enforcement actions against the company are suspended.

"During this phase, Ambipar will present its judicial recovery plan, which will define the conditions, stages, and schedule for the restructuring process," the company added.

Ambipar and its U.S.-listed subsidiary had filed for bankruptcy protection earlier this month after a turbulent period for the firm.

The bankruptcy move followed a cash crunch and the risk of accelerated debt repayments worth billions of reais.

($1 = 5.4039 reais)

(Reporting by Luciana Magalhaes; Writing by Andre Romani and Fernando Cardoso; Editing by Leslie Adler, Kirsten Donovan)

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