THE WHAT? Citigroup’s next step in its ongoing battle to recover funds mistakenly paid to Revlon creditors last summer is to seek an extension to the freezing order currently in place on the US$500 million sum, according to a report published by Bloomberg.
THE DETAILS The investment bank is hoping that the US District Court Judge who ruled that it cannot recover the funds, will issue an injunction putting a hold on the funds while it lodges an appeal. The lenders in question, which include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management, are set to oppose Citigroup’s request.
THE WHY? Citigroup’s attempt to recover the funds paid out to Revlon creditors in error has been repeatedly foiled, most recently by a court ruling denying Citibank the ability to force Revlon lenders to repay the money.