Citigroup Accidentally sent $900 Million: The big multinational company Citigroup has accidentally made a payment of worth $900 million to a famous cosmetics company named Revlon. This payment is made due to writing errors. Revlon Inc. is still in some legal dispute with its lenders regarding its debt-management.
About half of the payment ($450 million out of $900 million) has been recovered by the Citigroup Inc. This payment mistakenly has done to Revlon Inc. The bank had said that was a writing error.
This is a situation that is more confusing on Friday. Revlon s’ lenders claimed that the company is refusing to return the amount. But it is not confirmed yet who had to say this. Revlon also states that it is a private matter between both companies.
A Citigroup representative declined to comment on this payment, which is reported by the news website named Wall Street Journal. “Revlon did not pay down the loan or any part of the loan,” a representative of the company said in an emailed statement.
How does this happen?
This huge payment error happens because Revlon is owned by Mac Andrews & Forbes. And this organization is in a legal argument with some of its money lenders which are as follows:
- Brigade Capital Management
- H.P.S Investment Partners
- Symphony Asset Management
these are the companies that are against the Revlon s’ debt-management plan.
Also, the above companies are the heretic firms that haven’t paid back the amount of repayment. This amount is equal to the principal amount and accrued interest on it. Revlon also states that this bunch of lender has a bad reputation in the money related issues. Cosmetic company is facing very difficult in the repayment of the money of the Citigroup.
Revlon is finding out different ways to reconstruct its 3 billion debt load. And there is a big chance for lenders for getting their money back not at the same value.