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Citi Resigns Role on Brigade CLO Deal Amid Escalating Loan Feud

  • Bank was serving as lead arranger of $400 million transaction
  • Move comes amid continued legal fight over Revlon loan payment
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Citigroup Wins Order to Freeze Funds

Citigroup Inc. resigned as lead arranger for a collateralized loan obligation managed by Brigade Capital Management amid an escalating legal dispute between the two sides over an errant loan payment.

The bank stepped down from its role on Brigade’s $400 million Battalion XVIII CLO transaction, which was due to price Wednesday. It sent a notice of termination to the firm Tuesday, citing failure of certain conditions set forth in its engagement letter, according to documents seen by Bloomberg News.