Citigroup Urges Return of Revlon Payment

Citigroup made a final push on Wednesday afternoon to persuade a federal judge to force lenders of Revlon to return half a billion dollars of its own money that it mistakenly sent them.

Citigroup made a final push on Wednesday afternoon to persuade a federal judge to force lenders of Revlon to return half a billion dollars of its own money that it mistakenly sent them.

At the conclusion of a six-day non-jury trial, US District Judge Jesse Furman in Manhattan said in a statement he would rule as quickly as he could, after admitting “it’s not the easiest case.”

According to a Business Insider report, the case stemmed from an August 11th blunder where Citigroup, acting as Revlon’s loan agent, wired $893 million to Revlon lenders, which the struggling cosmetics company did not owe until 2023, rather than a $7.8 million interest payment.

Ten asset managers including HPS, Investment Partners, Brigade Capital Management and Symphony Asset Management have refused to return $501 million.

Furman said he will consider their thinking immediately after being paid, as he decides whether there was a “discharge for value.”

“You might expect some sort of chat or email like, ‘Whoa, can you believe it, they must have totally messed up,’” Furman pointed out.


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