Citigroup committed an expensive error
A $900 million “clerical error.” That’s what Citigroup did, according to the latest news.
Citigroup accidentally paid $900 million to Revlon – one of the oldest make-up companies in America. The lenders sued Revlon last week for shifting valuable assets to make them unavailable to creditors to use those assets as collateral for other creditors.
From Revlon’s point of view, the lawsuit is baseless, as lenders are trying to “enrich themselves and hurt the company by blocking Revlon from exercising its contractual rights to secure the financing necessary to execute our turnaround strategy and navigate the COVID-19 crisis.”
After filing the lawsuit, the lenders – Brigade Capital Management LP, Symphony Asset Management, and HPS Investment Partners – received the $900 million payment from the 2016 loan granted to Revlon.
Now, after Citigroup realized its mistake, it wants its money back. But the lenders don’t want to return the money. Rumor has it that “it isn’t clear why they would hand the money back, given their suit is against Citibank as well.”
Citigroup stock price fell 0.68% during today’s pre-market session. Year-to-date, it lost 34%.
Sources: Bloomberg.com, thestreet.com
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