Citigroup Mistakenly Pays $900 Million to Revlon Lenders in ‘Clerical Error’, Fighting to Get Money Back
Citigroup is currently trying to cope with huge error, which involves big money. According to various media reports, the New York-based bank paid nearly $900 million by mistake to several companies that have provided loans to Revlon. Citigroup is now asking Revlon Inc lenders to return the money, some of whom are locked in bitter fighter with the struggling cosmetic giant.
Wall Street, August 17: Citigroup is currently trying to cope with huge error, which involves big money. According to various media reports, the New York-based bank paid nearly $900 million by mistake to several companies that have provided loans to Revlon. Citigroup is now asking Revlon Inc lenders to return the money, some of whom are locked in bitter fighter with the struggling cosmetic giant.
According to a Bloomberg report, citing "people with knowledge of the matter," Citigroup has asked all of them to return the money, but so far has recouped less than half of it. German Man ‘Accidentally’ Buys 28 Tesla Cars Online Worth $1.5 Million Owing to Technical Glitch! Wait, What?
At least three recipients- Symphony Asset Management, Brigade Capital Management and HPS Investment Partners- have refused to return the money, Bloomberg reported. The bank blamed on a clerical error and refused to comment further on the issue.
Apparently, the money accidentally transferred cover the principal and accrued interest on the loan. On Wednesday, a group of creditors had sued Revlon. The suit claims that the cosmetic specialist shifted assets pledged as collateral to other entities to keep it out of reach of lenders.
Meanwhile, Revlon has struggled to remain relevant amid falling sales and strong competition from Estee lauder Cos, and several smaller companies using social media platforms to lure customers. Saddled with nearly $3 billion of debt, the cosmetic company has been hit hard by the COVID-19 pandemic,
(The above story first appeared on LatestLY on Aug 17, 2020 12:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).