Citigroup Inc. is close to getting back about $500 million it accidentally paid to 10 Revlon Inc. lenders, with three on the verge of returning their payouts and others making "substantial progress" toward a resolution, a court filing shows, Reuters reported. Citigroup, as Revlon's loan agent, had accidentally used its own money in August 2020 to prematurely pay off an $894 million loan owed by billionaire Ronald Perelman's now-bankrupt cosmetics company. Some recipients returned their payouts after realizing the mistake, which Citigroup blamed on human error, but the 10 lenders had refused, saying the bank paid what they were owed. The potential settlement was discussed in a joint letter by lawyers for Citigroup and the lenders, which include hedge funds and investment funds, filed late Monday night in Manhattan federal court. A resolution would end more than two years of litigation by Citigroup against Brigade Capital Management, HPS Investment Partners, Symphony Asset Management and the other lenders over a blunder that the bank's Chief Executive Jane Fraser called a "massive unforced error."
