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Citibank, Revlon’s main loan officer, intended to transfer interest of about $ 8 million to the company’s creditors. Instead, the bank sent 100 times that amount, including $ 175 million for a hedge fund.
In total, Citi sent $ 900 million to Revlon’s creditors.
Several creditors have returned the money, but there are 10 companies that refuse to return about 500 million dollars, and the US authorities are right.
As a general rule, US law punishes those who spend money accidentally sent to their accounts. Accidental transfers are common in the digital age and amounts can be returned in record time.
But New York law has an exception: If the beneficiary was entitled to receive the money, but did not know it was accidentally transferred, they can keep it, since the amount is the “exact number” that Citibank owed. , although a debt advance was not announced.
“We are very pleased with Judge Jesse Furman’s decision,” said Benjamin Finestone, who represented two creditors, Brigade and HPS Investment Partners.
Instead, Citi announced that it does not “agree with this decision” and announced that it will appeal, seeking to fully recover its funds.
Citibank currently has a market capitalization of $ 134.83 billion.
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