After a Judge Ruled in Lenders' Favor, Citi is Trying to Sto

After a Judge Ruled in Lenders' Favor, Citi is Trying to Stop Them From Spending the Mistaken Loan Repayment


Less than a month after a New York judge ruled that lenders accidentally repaid by Citigroup could keep their money, Citi is trying to stop the firms from using it.  
On Tuesday, the investment firm filed a request asking the judge to require the lenders to freeze the transferred funds until Citi files an appeal to a higher court.  
According to Citi’s filing, “the money represents a lottery-like windfall of hundreds of millions of dollars [for the lenders]. They were not expecting to receive this money for several years, if at all.” 
The filing refers Citi’s “mistaken” repayment of a $900 million loan for cosmetics maker Revlon. The bank had acted as an intermediary between Revlon and the lenders. Although Revlon hadn’t transferred the $900 million to Citi, the bank — which said it was intending only to pay the interest due to the lenders — repaid the loan in full, court records show.  

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