Page 11 - IAV Digital Magazine #505

iAV - Antelope Valley Digital Magazine
Citibank Sues For $176m Payment Made In Error
BBC: US banking giant Citigroup has asked a fed- eral court to force hedge fund Brigade Capital to return $176m (£134m).
The money is part of the $900m the bank accidentally transferred to creditors of the struggling cos- metics company Revlon.
The bank says it meant to send Brigade just $1.5m to cover interest on a loan the hedge fund holds.
Citigroup blames the accidental over-payment on an "operational mistake".
In a filing to the Southern District of New York Court, Citigroup
said it meant to make interest payments on behalf of Revlon but transferred amounts more than 100 times the size intended.
"When Citibank discovered the
mistake, it promptly asked the recipients to return its money," America's third- largest bank said in the filing.
Citigroup was preparing to step down as the
administrative agent for the Revlon loan when it acciden- tally wired rough- ly $900m to the lenders last week amid a bitter fight between the cos- metics company and creditors.
Some of those that received the over-payments have returned the money to Citigroup, while others, including Brigade, did not immediately give the money back.
Brigade was sup- posed to receive interest on a $174.7m loan, according to the complaint.
iAV - Antelope Valley Digital Magazine