Citigroup Inc asked a federal court to order Brigade Capital Management LP to return its share of more than $900 million that the bank mistakenly wired to Revlon Inc lenders, some of which are locked in a bitter fight with the struggling cosmetics giant.
The bank has recouped less than half of the money, which it blamed on a clerical error. Some of the lenders are refusing to give it back, including three firms that claimed Revlon was in default on a loan and should have repaid them anyway, according to people with knowledge of the matter.
In a lawsuit filed on Monday in New York, Citigroup, which is the administrative agent for the loan, said it intended to make interest payments on Revlon’s behalf but accidentally transferred amounts more than 100 times greater. Brigade was supposed to receive $1.5 million in interest on loan principal of $174.7 million, according