Hedge Funds: Citi Wins Battle Against Hedge Fund and Creditors

Hedge Funds: Citi Wins Battle Against Hedge Fund and Creditors
Citigroup won its battle to regain $900 million that it sent to cosmetic company Revlon creditors. Citi accidentally sent this money and intended to recover the funds as soon as possible. In addition, a U.S. judge blocked hedge fund Brigade Capital from doing anything with the $175 million it accidentally received from Citi. Eventually, the judge intends to make Brigade return the $175 million.
Following Citi’s accidental transfer of $900 million, Revlon creditors sued Revlon for its restructuring strategy. Citi was in charge of collecting loan payments. Instead of paying the loan payments, Citi erroneously paid creditors from its own funds. This mistake has drawn all parties in this transaction under more scrutiny. According banking analyst Dick Bove from Odeon Capital Group, there will be a lot more information and explanation for the regulatory mistake. He stated, “A payment error by the nation’s only truly international bank is likely to cause significant questions concerning the systems the bank is using.”
All 43 of Brigade’s funds that are in relation to Revlon creditors have refused to return the $175 million. According to attorney Robert Loigman — a representative for Brigade — “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.” However, an attorney for Citigroup claims that Brigade has the power to return the money as the manager of the funds. The attorney also claims that failure for the court to force Brigade to return the funds can set a harmful precedent.

Latest Alternative Investment News

Digital Assets: Chase UK Blocks Crypto Transactions; CoinBase CEO Brian Armstrong Pans Decision
Chase U.K. is set to block crypto-related payments starting October 16, with customers no longer able to make such transactions using debit cards or outgoing bank transfers. In an email…

FinTech: Visa Commercial Pay Virtual Cards Now Available To Lloyds Bank Customers
Visa (NYSE: V) and Lloyds Bank (LON: LLOY) have joined forces to introduce a cutting-edge virtual card solution, designed to cater to businesses of all sizes. This innovative product, known…

Artificial Intelligence: Tree-Strapped AI Sentries Warn Of Deforestation In Real Time
Small AI-equipped boxes called “curupiras” have been deployed in the Brazilian Amazon to combat deforestation. These boxes use sensors and AI software to detect sounds of chainsaws and tractors, signaling…

Venture Capital: Industry Ventures Closes On $1.7B In Commitments For Two Funds
Industry Ventures has successfully raised over $1.7 billion in two new funds aimed at assisting venture capital investors in achieving liquidity. The first fund, Industry Ventures Secondary X, has attracted…