Brigade responds that the lenders were “lawfully owed every penny” transferred by Citigroup in Revlon’s name. Therefore it couldn’t have known the payments were a mistake.
According to Brigade attorney, Robert Loigman, the bank suit against Brigade is “for strategic reasons,” since the disputed funds have already been distributed to the actual lenders.
The two will be back in court today as the judge determines the next step in the complex legal battle. Citigroup’s request for an injunction forcing Brigade to return the money while the case proceeds is being reviewed.
Citigroup began the process of briefing bank regulators who will be expecting an explanation for how a clerical error caused $900 million in payments to be distributed to Revlon’s lenders amid a bitter fight between the cosmetics company and its creditors.
Citigroup is still facing scrutiny from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve in what has been described by insiders as a “clerical error.”
