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Citigroup urges the Court of Appeal to strike "backwards" after the Revlon error



(Reuters) – Citigroup Inc. on Wednesday sued a federal appeals court to recover about $ 504 million of its own money that it accidentally linked to Revlon Inc. lenders, saying its mistakes did not entitle them to a big fall. [19659002] The bank's lawyer Neal Katyal said the lenders had six "red flags" of the error and did not expect the cosmetics company controlled by billionaire Ronald Perelman to repay them for another three years.

"If you strike back here, it's not unfair," Katyal told other U.S. Circuit Court of Appeals in Manhattan. "The parties return to the position they negotiated."

But a member of the panel of three judges said that an important precedent from the Supreme Court of New York seemed to leave legal questions about Citigroup's payment and the lenders' answers unanswered, and which perhaps the court should answer first.

"Each of these issues is really a political issue, "said District Judge Pierre Leval." We would largely guess. "

The case stemmed from New York-based Citigroup's advance payment in August 2020 of a $ 894 million loan to Revlon, which lacked enough money to repay it, which was not due until 2023.

Instead of repay their share of the money needed 1

0 asset managers whose clients included the Revlon lenders.

They said that Citigroup, which acted as Revlon's lending agency, paid exactly what they owed, and they had no reason to believe a sophisticated bank would do wrong.

The trustees included Brigade Capital Management, HPS Investment Partners and Symphony Asset Management, among others. drew attention to Citigroup's mistakes.

These executives deserve "finality", their lawyer Kathleen Sullivan told the Court of Appeal.

The case is I re Citibank August 11, 2020 Wire T ransfers 2nd U.S. Circuit Court of Appeals.

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