As the situation continues to escalate, Citigroup filed new lawsuits on Wednesday against HPS Investment Partners and Symphony Asset Management for allegedly refusing to return the money sent in error to the entities.
The Citigroup suits
The case is Citibank NA v Brigade Capital Management, 20-cv-6539, U.S. District Court, Southern District of New York (Manhattan).
Citigroup’s claims that “despite crystal-clear evidence that the payments were made in error,” Brigade is keeping the funds. They also maintain that Brigade “should have known that a surprise repayment of principal could not be made under the governing credit agreement.”
“And it was well aware that virtually no company, let alone a distressed retail and consumer company such as Revlon, would ever make such a substantial repayment while dealing with the significant financial consequences caused by the ongoing pandemic,” they added.
The order to freeze the funds came after Tuesday’s hearing in which Brigade told U.S. District Judge Jesse Furman it isn’t a Revlon lender, and that it doesn’t have the $175 million.
