Bank regulators won’t settle the dispute, instead their role will be to assure that any errors at the New York-based bank won’t be repeated.
$900M error complicates Revlon showdown
Revlon and its primary investors, Ron Perelman’s MacAndrews & Forbes, were struggling to remain relevant in the cosmetics market. By mastering social media, Estee Lauder and other smaller companies were leaving Revlon with a declining market share and shrinking sales.
Revlon is nearly $3 billion in debt and the pandemic has hit the company hard. It has been trying to restructure its debt.
It is no coincidence that Brigade Capital Management, HPS Investment Partners, and Symphony Asset Management are holding on to the Citicorp paymnets. They were part of the lender group involved in a lawsuit regarding tactics Revlon used in its debt restructuring.
Because of this lender suit, Citigroup had already started the process of resigning from its administrative role. In the meantime, Citigroup has recovered less than half of the money.
