Home Hedge Funds Citi May Lose Half-Billion On Revlon Snafu A Second Time

Citi May Lose Half-Billion On Revlon Snafu A Second Time

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Less than two years after narrowly avoiding it, cosmetics dinosaur Revlon finally succumbed to the COVID-19 pandemic and bankruptcy. This, of course, is bad news for all holders of Revlon’s $3.31 billion in debt—the company was worth just $123 million before the bankruptcy filing—but it is the worst news for one which may or may not even be a Revlon creditor, that ultimate magnet for bad news banking: Citigroup.

Even with Citi suffering the side effects of its latest fat finger fuck-up, it’s hard to forget its most embarrassing: The time it, in its role as Revlon’s loan agent, apparently panic-repaid nearly $1 billion to the hedge funds and others suing the bank and Revlon over the 2020 restructuring that saved it from bankruptcy (and (allegedly) got Revlon owner Ron Perelman paid in full on the bonds he (allegedly) didn’t tender in that deal) for another 19 months.

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