skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
  • play_arrow

    Smart Investor Radio PLAYING NOW


Citigroup in talks to recoup errant $500 million Revlon loan payment

todayDecember 1, 2022

share close

By Jonathan Stempel

NEW YORK (Reuters) -Citigroup Inc is negotiating the return of about $500 million it mistakenly paid a group of hedge funds and investment firms on a loan owed by Revlon Inc, the now-bankrupt cosmetics company controlled by billionaire Ronald Perelman.

In a Thursday filing in Manhattan federal court, lawyers for the bank and the lenders said they have been discussing a “consensual resolution” to end Citigroup’s August 2020 lawsuit to recoup the mistaken payment.

While no agreement has been reached, the lawyers said “material terms” of a settlement would provide for the return of Citigroup’s money, with the bank transferring interest and amortization payments it began receiving in early 2021.

Talks to end the lawsuit had been disclosed on Nov. 10. The lawyers asked U.S. District Judge Jesse Furman to let them update the status by Dec. 5.

Citigroup, which was Revlon’s loan agent, had accidentally used its own money in August 2020 to pay off the company’s $894 million loan three years early instead of paying $7.8 million in interest.

The bank blamed human error, and some recipients returned their payments.

But 10 asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management refused, saying the bank paid what they were owed.

Furman sided with them in February 2021, leading Citigroup to lower previously reported profit to reflect $390 million of added legal expenses.

But the federal appeals court in Manhattan overturned that ruling in September, saying it would leave the group with a “huge windfall” at Citigroup’s expense.

Revlon filed for Chapter 11 bankruptcy protection on June 15.

The case is In re Citibank August 11, 2020 Wire Transfers, U.S. District Court, Southern District of New York, No. 20-06539.

(Reporting by Jonathan Stempel in New York; Editing by Chris Reese and Stephen Coates)

Source link

Written by: smartinvestorradio

Rate it

Previous post


Biden Wants South Carolina as First Primary State in 2024, Demoting Iowa – The New York Times

Biden Wants South Carolina as First Primary State in 2024, Demoting Iowa  The New York TimesBiden urges Dems to scrap Iowa, elevate South Carolina, Georgia, Michigan in early presidential primaries  POLITICO'A kick in the teeth': Iowa may lose first-in-the-nation status under President Biden's new proposal  KCCI Des MoinesOpinion | Biden wants to fix the messy primary process. Here's what should happen.  The Washington PostBiden pushes South Carolina as first primary state, elevates Georgia and Michigan  The Washington PostView Full Coverage on Google News Source link

todayDecember 1, 2022


Information presented is for entertainment and general information purposes only. Opinions expressed are those of the presenter only. We make no promises or guarantees of investment performance. None of the information presented here is intended to form the basis for any offer or recommendation or have any regard to investment objectives to the needs of any specific person. Smart Investor Radio is not a broker-dealer, certified financial planner or registered investment adviser.