{"id":135086,"date":"2020-12-16T22:56:09","date_gmt":"2020-12-16T19:56:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/citigroup-urges-return-of-mistaken-revlon-payment-as-trial-ends\/"},"modified":"2020-12-16T22:56:09","modified_gmt":"2020-12-16T19:56:09","slug":"citigroup-urges-return-of-mistaken-revlon-payment-as-trial-ends","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/citigroup-urges-return-of-mistaken-revlon-payment-as-trial-ends\/","title":{"rendered":"#Citigroup urges return of mistaken Revlon payment as trial ends"},"content":{"rendered":"

“#Citigroup urges return of mistaken Revlon payment as trial ends<\/strong>”
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Citigroup Inc made a final push on Wednesday to persuade a federal judge to force lenders of Revlon Inc to return half a billion dollars of its own money that it mistakenly sent them.<\/p>\n

At the conclusion of a six-day non-jury trial, US District Judge Jesse Furman in Manhattan said he would rule as quickly as he could, while admitting \u201cit\u2019s not the easiest case.\u201d<\/p>\n

The case stemmed from an Aug. 11 blunder where Citigroup, acting as Revlon\u2019s loan agent, wired $893 million to Revlon lenders, which the struggling cosmetics company controlled by billionaire Ronald Perelman did not owe until 2023, rather than a $7.8 million interest payment.<\/p>\n

Ten asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management have refused to return $501 million.<\/p>\n

Furman said he plans to consider their thinking immedia<\/a>tely after being paid, as he decides whether there was a \u201cdischarge for value.\u201d<\/p>\n

Such a discharge allows creditors who are owed money to keep sums they are mistakenly wired if they are unaware of a mistake.<\/p>\n

\u201cYou might expect some sort of chat or email like, \u2018Whoa, can you believe it, they must have totally messed up,’\u201d Furman said.<\/p>\n

Citigroup, the administrative agent for the 2016 loan, blamed human error for the overpayment.<\/p>\n

It said the lenders should return its money because they knew it was sent in error and Revlon couldn\u2019t afford it.<\/p>\n

\u201cThe question is, what would have a reasonable person done under the circumstances,\u201d Citigroup\u2019s lawyer Christopher Houpt said. Revlon\u2019s lenders acted \u201cas if there was no repayment,\u201d he said.<\/p>\n

In contrast, the defendants said they had no reason to believe Citigroup blundered.<\/p>\n

\u201cThe situation here is the exact payout of outstanding principal with accrued interest through that date,\u201d their lawyer Adam Abensohn said. \u201cThat is quite different from hitting \u2018send\u2019 twice on the same interest payment.\u201d<\/p>\n

Furman urged the financial services industry and regulators to adopt procedures to address similar situations.<\/p>\n

\u201cThe industry should figure out a better way of dealing with these things, even if this is a black swan event,\u201d he said.<\/p><\/div>\n

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

“#Citigroup urges return of mistaken Revlon payment as trial ends” Citigroup Inc made a final push on Wednesday to persuade a federal judge to force lenders of Revlon Inc to return half a billion dollars of its own money that it mistakenly sent them. At the conclusion of a six-day non-jury trial, US District Judge…<\/p>\n","protected":false},"author":1,"featured_media":135087,"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-urges-money-returned.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[86526,4978,70932,70446,79362],"class_list":["post-135086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-12-16-20","tag-bankruptcy","tag-citigroup","tag-lawsuits","tag-revlon"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/135086","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=135086"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/135086\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/135087"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=135086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=135086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=135086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}