THE WHAT? Citigroup has persuaded a US Second Circuit of Appeals judge that Revlon lenders should repay the significant sum paid to them in error, according to a report published by The Wall Street Journal.
THE DETAILS The decision will leave the investment firms fighting for repayment with fellow Revlon creditors in the cosmetic firm’s ongoing bankruptcy proceedings.
“While Citi has taken steps to reduce the likelihood of such an error in the future, today’s decision provides welcome stability and upholds the concept of cooperation needed for a well-functioning syndicated lending market,” the bank said in a statement, per The Wall Street Journal.
THE WHY? The judge reversed the lower court’s decision, ruling that the investment firms in question were not entitled to keep the money because the debt wasn’t due for repayment at the time of the accidental transfer.