Bloomberg Law
Feb. 17, 2021, 2:23 PM

Citi May Get Stuck With Huge Chunk of Distressed Revlon Debt (1)

Katherine Doherty
Katherine Doherty
Bloomberg News

It was hardly the role Citigroup Inc.’s bankers signed up for when they helped Ron Perelman’s Revlon Inc. borrow $1.8 billion in 2016. But, now a back-office blunder is leaving the financial behemoth faced with the prospect of becoming one of the biggest creditors to the troubled cosmetics empire.

A surprise ruling by a New York judge on Tuesday blocked Citigroup’s efforts to recover $500 million it had mistakenly sent Revlon’s lenders last year as the so-called administrative agent on the company’s loan. While the bank says it will appeal the decision, a failure to overturn it will ...

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