A monumental blunder. Citibank has filed a complaint against an investment fund that refuses to reimburse part of the 900 million euros it transferred “by mistake”, according to BFM Business. After “a clerical error”, as she clarified, the American bank transferred this money to several creditors of the cosmetic manufacturer Revlon.
One of them, Brigade Capital Management, “refused to return its share and converted around $ 175 million for its own use,” Citibank laments in the complaint filed Monday, August 17, with a New York court.
The money was basically used to pay the interest owed by Revlon to creditors, according to BFM.
A company in difficulty
But the Brigade Capital Management investment fund estimated that the amount received was used to repay its entire loan to the cosmetics manufacturer. However, Revlon still has three years to do so, says Citibank in its complaint.
In addition, the investment fund is “well aware that hardly any company, let alone a company in difficulty of consumer products like Revlon, would make such a large prepayment while having to face the major financial consequences caused by pandemic ”, specifies the document.
“Friday August 14, Citi had not yet received the majority of funds, although refunds continued to flow,” reveals the site NDTV.
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