Ending litigation of more than two years, Citigroup Inc has arrived at an agreement with all 10 Revlon Inc lenders that it has mistakenly paid about $500 million on a loan.
As Revlon’s loan agent, Citigroup accidentally used its own money in August 2020 to prematurely pay off an $894 million loan owed by billionaire Ronald Perelman’s now-bankrupt cosmetics company Revlon, according to a media report.
Although some of the recipients returned their payouts to Citi after realising the mistake, which the US bank blamed on human error, about 10 lenders refused to cite that the bank paid what they owed.
In a letter to a Federal Judge, lawyers for both Citigroup and the lenders said that about three-quarters of the mistaken payments have now been returned to Citibank.
Citibank is likely to file notices of dismissal in the coming weeks if payments are made as per the agreement.
Citi Bank Chief Executive Jane Fraser stated it was a massive, unforced error.
Meanwhile, Friday’s resolution ends more than two years of litigation by Citigroup against Brigade Capital Management, HPS Investment Partners, Symphony Asset Management and the other lenders.
In June 2022, Revlon Inc filed for Chapter 11 bankruptcy protection in the US as it struggled with a huge debt load and supply chain constraints in the wake of the global container shortage.
Founded in 1932, the New York-based Revlon, known for its lipsticks and nail polishes, sells products in over 150 countries. In 2021, the company reported net revenue of $2.08 billion. Besides Revlon, the company also sells skincare and fragrance products under the Elizabeth Arden brand, which is positioned in the premium segment.
