Citibank has now filed a lawsuit at the Southern District of New York against Brigade Capital after making what it terms an ‘Operational Mistake’ where it wired $175 million but only stated $17.5 million which is 10 per cent of the total sum.
Citibank claimed in court that it wired as much as 100 times the amount of its funds to the hedge fund to service interest payments made to Revlon, a cosmetics company. Other Revlon creditors also attested to receiving humongous amounts all totalling $900 million but now Brigade Capital has refused to refund the money.
The Court has now placed a preliminary injunction against Brigade Capital with an ultimatum to refund the money or to not withdraw it unti the next court appearance slated for August 31.
Attempts to reach Bridge Capital hitherto proved abortive according to CNN Business
