Citigroup asks judge to freeze funds it mistakenly sent to Revlon creditors
By Imani Moise (Reuters) - Citigroup asked a U.S.
By Imani Moise
(Reuters) - Citigroup asked a U.S. judge on Tuesday to freeze funds it mistakenly sent Revlon Inc
Last week, Citi repaid a nearly $900 million loan made to Revlon, a day after lenders sued the cosmetic company over its restructuring tactics, but the repayment was made in error. Citi quickly caught the payment error and was taking steps to recover the funds, the bank has said.
Citi had been acting as agent on the loan, meaning it collected payments from Revlon to distribute to the creditors, but the accidental payment came from the bank's own funds.
Brigade Capital Management LP, which got $175 million from the payment, has so far refused to give the money back. Citigroup wired the money to 43 Brigade funds because they were Revlon's lenders, rather than Brigade itself.
"To target Brigade as if they were the lender here, it just doesn't work and it doesn't make sense with respect to the type of relief they're seeking," said Robert Loigman, a lawyer representing Brigade.
An attorney for Citigroup asserted that as manager of the funds, Brigade has the power to return the money to the bank, and that if a judge rules the hedge fund can keep the funds it would create dangerous precedent.
"We think it creates serious issues for the banking industry If players like Brigade can understand, by all accounts, that this was unintentional, that this was a mistake, and can reap a windfall from it," said Matthew Ingber, who represents Citi.
A judge will rule later on Tuesday whether or not to grant the bank's request for a temporary restraining order. The hearing was cut short because the judge had to be at a bail hearing.
"Given the virtual world that we're in, I can't simply make people wait in the courtroom," he said.
(Reporting by Imani Moise; Additional reporting by Jonathan Stempel; Editing by Nick Zieminski)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.