The American bank, Citibank is in turmoil. She had to wear complaint against one Investment Funds who refuses to return 900 million euros paid ” by mistake “. The society Brigade Capital Management refuses to reimburse the amount for a specific reason.
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Citibank in turmoil
It’s a ” writing error “ which is very expensive to Citibank. The American bank paid ” by mistake “ 900 million euros to several creditors of the cosmetics manufacturer Revlon, indicated BFM Business. The money was to be used for pay interest owed by Revlon to creditors, whose transaction is managed by the bank. Citibank realized his accounting error committed the Aug 11 and immediately asked beneficiaries of give money back.
However Brigade Capital Management “Refused to return his share and converted about $ 175 million for his own use”. The bank filed a complaint Monday August 17th with a New York court. According to the complaint, Brigade believes that the amount disbursed by mistake (either more than 100 times the amount of the planned payment) must allow reimburse in full of his loan at Revlon. Argument that Citibank refutes en bloc. The company still has 3 years to make this refund and does not have the cash to do it.
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Citibank in justice
The complaint also informs us that Brigade “Was well aware that hardly any business, let alone a struggling consumer item company like Revlon, would make such a large prepayment while facing the major financial consequences caused by the pandemic.” The site NDTV reveals that “As of Friday August 14, Citi had not yet received the majority of the funds, although reimbursements continued to flow.”
Brigade is part of a group of creditors (including UMB Bank) which filed a complaint against Revlon on August 12, just after the error of Citibank. The complaint points to the way the cosmetics maker restructured its debt.
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Learn more about: money – bank – Citibank – Justice – refund
Posted by Justine on August 27, 2020
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