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Citigroup’s $500 Million Blunder Ends in Victory for the Bank

  • Appeals court says Revlon lenders can’t keep errant payment
  • Panel vacates lower ruling; one expert cites ‘Twilight Zone’
Revlon Files Bankruptcy Amid Supply Woes
Photographer: Gabby Jones/Bloomberg
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A federal appeals court saved Citigroup Inc. from an epic blunder that became the talk of Wall Street, rejecting a ruling that Revlon Inc. creditors could keep more than half a billion dollars the bank accidentally sent them. 

After a decision process one expert compared to “The Twilight Zone,” a trio of judges in Manhattan on Thursday overturned the trial court’s surprise decision early last year that the lenders -- which include Brigade Capital Management LP, HPS Investment Partners LLC and Symphony Asset Management -- didn’t have to return $504 million the bank mistakenly wired them in 2020.