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Bloomberg
Citigroup Inc. scored a temporary court order freezing $175 million that Brigade Capital Management LP declined to return after the bank accidentally transferred more than $900 million to Revlon Inc. lenders.
The order followed a hearing in which the bank and the hedge fund faced off over Citigroup’s expensive blunder. The two will be back in court as the judge determines the next steps in their legal battle, including whether to hold a hearing on the bank’s request for a preliminary injunction forcing Brigade to give the money back while the case proceeds.
Brigade, which says it isn’t a Revlon lender itself, told US District Judge Jesse Furman in the hearing that it doesn’t have the $175 million. Citigroup wired payments to about 40 funds that use Brigade as their investment or collateral manager, it says.
A lawyer for the bank told Furman it’s exactly in that capacity that Brigade
is acting “in concert†with
the funds, leading the charge against returning the money.