Citigroup in Error Gave Revlon Lenders $900M and Wants It Back

Citigroup in error gave $900 million to Revlon lenders and now it wants that money back, media reports say.
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Citigroup  (C) - Get Report accidentally gave $900 million to Revlon  (REV) - Get Report lenders and now wants that money back, media reports say.

“Lenders that sued Revlon on Wednesday over its debt-restructuring tactics were surprised to learn Thursday they had been fully repaid on a loan issued in 2016,” sources told The Wall Street Journal. “Citi executives were soon asking for the money back, saying it was paid inadvertently due to an operational error.”

Lenders received full principal and accrued interest on the loan, a source told The Journal.

The lenders include Brigade Capital Management LP, HPS Investment Partners and Symphony Asset Management.

The lawsuit filed Wednesday alleged that Revlon shifted valuable assets to make them unavailable to the creditors and then used the assets as collateral for other creditors.

Some of Revlon’s lenders are refusing to return the money to Citi, sources told Bloomberg. “So far it’s received some but not all of the funds back,” they said, according to the news service.

As for Revlon, it said earlier this week, “this group of lenders has repeatedly resorted to baseless accusations in an attempt 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.”

Shares of New York financial-services giant Citi recently traded at $53.04, up 0.3%. They have slid 34% this year.

Shares of Revlon, the New York cosmetics company, recently traded at $8.44, up 0.8%. They have dropped 61% year to date.