Citi loses fight to recoup $500M lost in mistake wire transfer to Revlon lenders
Citigroup Inc. will seek to extend a court order freezing more than US$500 million the bank accidentally sent to Revlon Inc. creditors last summer while it challenges a ruling that it can’t recover the funds.
In a court filing Tuesday, the bank told U.S. District Court Judge Jesse Furman that it will ask him to issue an injunction putting a hold on the funds while it appeals his refusal to force a group of Revlon creditors to return the money.
Furman last week rejected the bank’s attempt to recover US$504 million it accidentally sent to asset managers for Revlon lenders. They include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management.
The lenders -- some of whom were locked in a bitter restructuring battle with Revlon when they received the payments -- oppose Citigroup’s request to extend the judge’s orders freezing the funds.
The case is In re Citibank August 11, 2020 Wire Transfers, 20-cv-6539, U.S. District Court, Southern District of New York (Manhattan).