Citi Loss in Revlon Transfer Case Disrupted Industry, Group Says

A judge’s decision to allow a group of dissident Revlon Inc. creditors keep more than a half a billion dollars accidentally sent to them by Citigroup Inc. last year has already had significant impact on the syndicated loan industry, a trade group said in asking an appeals court to overturn the ruling.

The Loan Syndications and Trading Association said in a brief filed with the appeals court in Manhattan that U.S. District Judge Jesse Furman’s surprise decision in February has “significantly disrupted” the drafting and negotiation of credit facilities and the expectations of participants in the market.

Mistakes will ...