Brazilian planemaker Embraer SA said on Monday it has closed a $650 million revolving credit facility with a group of national and international financial institutions as it looks to reinforce its liquidity for the coming years.

The credit facility was led by PNC Bank, Credit Agricole, Natixis, MUFG and Santander, Embraer said in a statement, adding that it will allow it to regain access to financial resources for three years at pre-negotiated rates, which can be renewed for another two years at the lenders' discretion.

A trend towards superpriority debt exchanges that has begun appearing in out-of-court restructurings will continue to cause worry amongst minority debt holders and will likely result in continued litigation regarding the propriety of such exchanges. Examples of such troublesome exchanges began with an exchange conducted by Serta Simmons Bedding, LLC (“Serta”) and has continued with structurally similar transactions conducted by other companies, including Boardriders, Inc. (“Boardriders”) and TMK Hawk Parent, Corp. (“TriMark”).  

Tyler Layne and Lee Sands, attorneys at Waller Law cover three recent out-of-court debt transactions that have introduced a novel way for majority lenders and borrowers to improve their position at the detriment of the non-participating/minority lenders.