Citi’s $500 Million Blunder on Revlon Loan Near Final Resolution

Citigroup Inc. and creditors of Revlon Inc. fighting over an accidental $900 million payment the bank made two years ago said they are close to resolving their litigation over the mistake.

The bank and the lenders told a federal judge in a letter late Monday that three of the defendants the bank sued to get the money back are prepared to sign an agreement ending the litigation, while there has been “substantial progress” in talks with the others. The remaining defendants are working with trustees and others to return the funds, the parties said.

In February 2021 the lenders, which ...