{"id":223628,"date":"2021-04-09T21:44:50","date_gmt":"2021-04-09T18:44:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/citigroup-urges-longer-freeze-over-botched-revlon-payment\/"},"modified":"2021-04-09T21:44:50","modified_gmt":"2021-04-09T18:44:50","slug":"citigroup-urges-longer-freeze-over-botched-revlon-payment","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/citigroup-urges-longer-freeze-over-botched-revlon-payment\/","title":{"rendered":"#Citigroup urges longer freeze over botched Revlon payment"},"content":{"rendered":"

“#Citigroup urges longer freeze over botched Revlon payment<\/strong>”<\/p>\n

\n

Citigroup on Friday urged a federal judge to extend a freeze on $504 million of its own money that it mistakenly sent a group of Revlon lenders.<\/p>\n

The bank requested an injunction from Manhattan Federal Judge Jesse Furman, who on Feb. 16 said 10 asset managers could keep the funds because they had no reason to think a \u201csophisticated\u201d bank could make such a mistake.<\/p>\n

Citigroup is app<\/a>ealing, and last-minute talks with the asset managers\u2019 lawyers on terms for a longer freeze broke down.<\/p>\n

\u201cThey won\u2019t guarantee, if we win our appeal, that we\u2019ll get our money,\u201d Citigroup\u2019s lawyer, Neal Katyal, said. \u201cOnce this money goes out the door, it\u2019s going to be hard to bring back.\u201d<\/p>\n

Adam Abensohn, a lawyer for asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management, said they could not accept an injunction because their lender clients now held the money.<\/p>\n

\n
\"\"
HPS Investment Partners CEO Scott Kapnick. A costly error by Citigroup resulted in HPS and other lenders of cosmetics giant Revlon being repaid their loans far earlier than expected.<\/figcaption>
Getty Images for Room To Read<\/span><\/figcaption><\/figure>\n<\/div>\n

He also said the lenders were paid the money they were owed, and there was a \u201cstrong presumption\u201d they were free to use it.<\/p>\n

Citigroup is trying to escape a back-office blunder that could dampen client confidence in its ability to handle money, and which it said could make handling wire transfers too risky.<\/p>\n

The New York-based bank, which was Revlon\u2019s loan agent, had intended last August to make a small interest payment, but instead paid off the cosmetics company\u2019s $894 million loan from its own pocket. It has recouped about $390 million.<\/p>\n

Furman had suggested a compromise where the lenders would agree to use \u201csubstitute assets\u201d to repay Citigroup with interest if the bank won its appeal.<\/p>\n

But Katyal said Citigroup would suffer irreparable harm absent an injunction.<\/p>\n

Katyal pointed to the recent collapse of the investment firm Archegos Capital Management, saying it had $20 billion in capital and \u201cpoof, in a flash, it disappeared. That\u2019s the point of having a secured interest.\u201d<\/p>\n

Furman said he will rule as quickly as he can.\n <\/p><\/div>\n

If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n

\n

For forums sites go to Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

\n

If you want to read more News<\/a> articles, you can visit our News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

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

“#Citigroup urges longer freeze over botched Revlon payment” Citigroup on Friday urged a federal judge to extend a freeze on $504 million of its own money that it mistakenly sent a group of Revlon lenders. The bank requested an injunction from Manhattan Federal Judge Jesse Furman, who on Feb. 16 said 10 asset managers could…<\/p>\n","protected":false},"author":1,"featured_media":223629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/04\/citi-seeks-revlon-delay.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[101399,4978,70932,70446,73808,79362],"class_list":["post-223628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-9-21","tag-bankruptcy","tag-citigroup","tag-lawsuits","tag-loans","tag-revlon"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/223628","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=223628"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/223628\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/223629"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=223628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=223628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=223628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}