THE WHAT? Citibank is penalising the Revlon lenders refusing to repay sums sent to them in error by blocking them from debt offerings, according to a report published by Bloomberg.
THE DETAILS Anonymous sources ‘close to the matter’ told the news organisation that the bank has not extended invites to new-issue debt deals to money managers from Brigade Capital Management, HPS Investment Partners and Symphony Asset Management in retaliation for their refusal to repay the US$500 million sent to them in error.
THE WHY? Citi lost its battle to retrieve the mistaken payments paid out to Revlon creditors in court. Currently, Citigroup is responsible for the bulk of a US$900 million loan, and will have to seek repayment from the cosmetics company if its appeal fails.