Daily Management Review

Citigroup mistakenly paid Revlon's creditors about $ 900M


American bank Citigroup Inc mistakenly paid about $ 900 million to creditors of Revlon Inc and is now asking them to return the money, writes The Wall Street Journal, citing knowledgeable sources.

Lenders filed a lawsuit against Revlon in connection with the company's tactics regarding debt restructuring and information received the next day that the loan issued in 2016 had been fully repaid.

Citi's management requested to return the money, saying that it was paid inadvertently due to an operational error.

Lenders received the full amount and accrued interest on the loan, a source said. According to a second source, the money did not come from Revlon.

The US-based cosmetics and perfumery manufacturer is in conflict with loan lenders in 2016, including Brigade Capital Management LP, HPS Investment Partners LLC and Symphony Asset Management.

The lawsuit filed in federal court in New York states that the company improperly transferred intellectual property rights that were used as security for a loan in a series of deals starting in 2019.

According to the lawsuit, the company violated loan agreements in connection with the transfer of intellectual property of a number of brands, including American Crew, Elizabeth Arden and Almay, to its divisions in order to use them as a guarantee for other creditors.

source: wsj.com