The financial group mistakenly injected that money to creditors of the cosmetics manufacturer.
Grow Your Business, Not Your Inbox
Stay informed and join our daily newsletter now!
1 min read
A federal judge in the United States ruled Tuesday that Citigroup will not be able to recover $ 500 million that it transferred by mistake to Revlon creditors.
According to the BBC , this happened on August 11, 2020 when Citigroup, acting as loan officer, injected 893 million to the lenders into the cosmetics company to pay off a loan that was due in 2023. Citigroup’s intention was to send an interest payment of only $ 7.8 million, but an operator made a mistake and transferred more money.
Some creditors returned the extra money, but 10 creditors refused and Citigroup sued to recover $ 501 million.
Manhattan Judge Jesse Furman indicated that the transfer made on August 11, 2020 was “final and complete operations, not subject to revocation.”