The money is part of the USD 900 million the bank accidentally transferred to creditors of the struggling cosmetics company Revlon. The bank says it meant to send Brigade just USD 1.5 million to cover interest on a loan the hedge fund holds.
Citigroup blames the accidental over-payment on an ‘operational mistake’.
Some of those that received the over-payments have returned the money to Citigroup, while others, including Brigade, did not immediately give the money back. Brigade was supposed to receive interest on a USD 174.7 million loan, according to the complaint.
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