Citi, Revlon lenders attain deal over $500 million unintentional cost By Reuters

(Reuters) -Citigroup Inc reached an settlement with all 10 Revlon Inc lenders it mistakenly paid about $500 million on a mortgage, ending litigation of greater than two years, a courtroom doc confirmed on Friday.

Citigroup (NYSE:), as Revlon’s mortgage agent, had unintentionally used its personal cash in August 2020 to prematurely repay an $894 million mortgage owed by billionaire Ronald Perelman’s now-bankrupt cosmetics firm.

A few of the recipients returned their payouts to Citi after realizing the error, which the U.S. financial institution blamed on human error, however the 10 lenders had refused, saying the financial institution paid what they have been owed.

“About three quarters of the mistaken funds have now been returned to Citibank,” legal professionals for each Citigroup and the lenders stated in a letter to a federal choose.

Citibank expects to file notices of dismissal within the coming weeks if funds are made as per the settlement, the doc stated.

Friday’s decision ends greater than two years of litigation by Citigroup in opposition to Brigade Capital Administration, HPS Funding Companions, Symphony Asset Administration and the opposite lenders, over a blunder that the financial institution’s chief govt, Jane Fraser, referred to as a “huge, unforced error.”