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Citi’s $900 Million Revlon Gaffe Risks Getting Even More Painful

  • Citi says it owns $500 million of Revlon debt following error
  • Revlon has hinted that Citi may not be entitled to the cash
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Citi’s $900 Million Revlon Gaffe Resurfaces

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.