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Citigroup Restates Earnings After Writing Down Revlon Loan

Citigroup Restates Earnings After Writing Down Revlon Loan

Friday, 26 February 2021 06:44 PM

Citigroup Inc. restated fourth-quarter results after writing down a portion of a loan to Revlon Inc. it now owns after losing a court battle.

The bank now has rights as a creditor to the troubled cosmetics giant, according to a filing Friday. The firm lost a court battle over a payment it mistakenly sent to a band of lenders to Revlon in August. That led the bank to boost operating expenses in its institutional clients group by $390 million in the fourth quarter.

Citigroup accidentally sent close to $900 million to lenders to the troubled cosmetics giant. While some lenders opted to return roughly $389.8 million, the bank sued 10 fund managers to recoup the remaining funds.

After a trial that was closely watched across Wall Street in December, Citigroup unexpectedly lost the case earlier this month. The bank continues to believe it is entitled to the funds and has said it will appeal.

Separately, the firm said regulatory agencies in the Asia Pacific region are probing the firm’s equity sales trading desks.

The probes are tied to facilitation trades, or transactions in which the bank “trades fully or partially as principal,” Citigroup said in its annual regulatory filing on Friday. The firm said it is cooperating with the investigation.

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Citigroup Inc. restated fourth-quarter results after writing down a portion of a loan to Revlon Inc. it now owns after losing a court battle.The bank now has rights as a creditor to the troubled cosmetics giant, according to a filing Friday. The firm lost a court battle...
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Friday, 26 February 2021 06:44 PM
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