It took less than a day for Citigroup Inc.’s now-infamous payment error to Revlon Inc. lenders to come up in the cosmetics giant’s bankruptcy.
The bank’s two-year-old blunder -- in which it wired the balance of a $900 million loan rather than just the interest, and then failed to get most of it back when investors claimed Revlon was in default and should have repaid them anyway -- will likely impede the company’s restructuring plans, court papers show. The problem: it’s not clear who, if anyone, has the rights to the repayment of the remaining $500 million of loan principal caught up in an ongoing court battle over the accidental transfer.
