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Citigroup wants its money back

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
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


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.