Citigroup Inc. sued Brigade Capital Management LP for the return of the hedge-fund manager’s share of nearly $900 million that the bank said it mistakenly paid to Revlon Inc. lenders, WSJ Pro Bankruptcy reported. Brigade “has unlawfully attempted to capitalize on the mistaken payment,” Citi said in the complaint, filed in New York federal court Monday. Brigade and other lenders have taken the position that they aren’t obligated to return the money, The Wall Street Journal reported Friday. Revlon has said that it didn’t pay the money itself. In the lawsuit, Citi said that the payment on a loan issued by Revlon in 2016 came from the bank’s own funds. Citi, in charge of collecting payments and communicating with the syndicate of lenders that provided the 2016 loan to Revlon, asked for a court order requiring Brigade to give up its share of the loan payment made last week, roughly $175 million.
