Citigroup says an employee error caused it to send more than $900m of its own money to a group of lenders expecting an interest payment on behalf of Revlon. The bank last month sued 11 investment managers for the Revlon creditors — including Brigade Capital Management LP, HPS Investment Partners and Symphony Asset Management — that are trying to hold on to the money as payment of Revlon’s debt to them.
“They’re going to defend the case on the grounds that they supposedly don’t control the money,” John Baughman, a lawyer for Citigroup, said during a conference. “We say there was a mistake. We say it’s a fact. We have to provide discovery as to whether it’s a mistake.”