{"id":129785,"date":"2020-12-09T23:12:07","date_gmt":"2020-12-09T20:12:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/citigroup-defends-actions-at-trial-over-900m-revlon-blunder\/"},"modified":"2020-12-09T23:12:07","modified_gmt":"2020-12-09T20:12:07","slug":"citigroup-defends-actions-at-trial-over-900m-revlon-blunder","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/citigroup-defends-actions-at-trial-over-900m-revlon-blunder\/","title":{"rendered":"#Citigroup defends actions at trial over $900M Revlon blunder"},"content":{"rendered":"

“#Citigroup defends actions at trial over $900M Revlon blunder<\/strong>”
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Citigroup went to trial Wednesday to try to recoup a half-billion dollars it claims is still due after it accidentally used nearly $900 million of its own money to repay lenders of Revlon, the struggling cosmetics company.<\/p>\n

The unusual case in Manhattan federal court could provide insight into Wall Street banks\u2019 relationships with clients, and the steps that banks must take to safeguard how money is moved.<\/p>\n

It stemmed from an Aug. 11 incident where the bank\u2019s\u00a0Citibank\u00a0unit, acting as Revlon\u2019s loan agent, wired $893 million to Revlon\u2019s lenders rather than a planned $7.8 million interest payment, app<\/a>earing to pay off a loan not due until 2023.<\/p>\n

While some 200 Revlon lenders have repaid Citigroup, the bank wants hedge fund and asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management to return the remaining $501 million. They claim they were simply paid what they were owed.<\/p>\n

Citigroup has said the lenders did not receive a prepayment notice, and Vincent Farrell,\u00a0Citibank\u2019s North American loan chief, testified it would be \u201cextremely uncommon\u201d not to send one if the bank intended a full repayment of loan principal.<\/p>\n

Under questioning from the lenders\u2019 lawyer Adam Abensohn, Farrell agreed that the overpayment was \u201chuman error,\u201d but was challenged on whether internal communications showed bank employees thought otherwise, or whether anyone was disciplined.<\/p>\n

He was also asked whether Citigroup was \u201cholding off\u201d on firing a loan manager involved in the overpayment until after the trial. \u201cI don\u2019t know,\u201d Farrell responded.<\/p>\n

Revlon\u2019s lenders have said they had no reason to think Citigroup made a mistake. Some have also claimed they thought Revlon\u2019s billionaire controlling shareholder Ronald Perelman stepped in to bail the company out, as he had done before.<\/p>\n

US District Judge Jesse Furman is overseeing the nonjury trial by videoconference. It may last four days. A key issue is whether there was a \u201cdischarge for value\u201d entitling lenders to keep Citigroup\u2019s money.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Citigroup defends actions at trial over $900M Revlon blunder” Citigroup went to trial Wednesday to try to recoup a half-billion dollars it claims is still due after it accidentally used nearly $900 million of its own money to repay lenders of Revlon, the struggling cosmetics company. The unusual case in Manhattan federal court could provide…<\/p>\n","protected":false},"author":1,"featured_media":129786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2020\/12\/citigroup.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[83131,4978,70932,79362,71007],"class_list":["post-129785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-12-9-20","tag-bankruptcy","tag-citigroup","tag-revlon","tag-scandals"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/129785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=129785"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/129785\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/129786"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=129785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=129785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=129785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}