Core Insights - The head of Brazilian firm Ambipar Participacoes e Empreendimentos and a co-investor lost collateral in a debt issuance as creditors moved to seize shares in a hydroelectric power company [1] - The acquisition of Empresa Metropolitana de Águas e Energia SA (Emae) by Cia. de Saneamento Basico do Estado de Sao Paulo reflects ongoing financial troubles for Ambipar and its leadership [4][3] Company Developments - Tércio Borlenghi Junior and Nelson Tanure pledged shares of Emae as collateral for a local bond issuance, with Tanure's fund Phoenix FIP acquiring control of Emae last year [2] - Ambipar's shares and bonds have significantly declined after the company indicated potential financial collapse, leading to the hiring of BR Partners for restructuring [4] Industry Context - The acquisition of Emae by Sabesp is seen as strategic for enhancing water supply security in the São Paulo metropolitan area, which currently faces water scarcity [6] - Sabesp's CEO noted that the investment, while small, is crucial for operational synergy and improving water security as the region expands [7][6]