Citigroup secures order freezing $411.7-M in effort to recoup $900-M

Citigroup Inc. secured court orders against Revlon Inc. creditors Symphony Asset Management, HPS Investment, and Brigade Capital Management, freezing $411.7 million that was mistakenly sent to them.

A federal judge froze $127.3 million that HPS Investment Partners LLC is retaining and $109.7 million that Symphony Asset Management LLC declined to return.

On Tuesday, the same judge issued a temporary order against Brigade Capital Management LP, freezing $174.7 million that it declined to give back.

Citigroup is suing the three firms, which held $411.7 million in Revlon debt.

The bank is seeking to recoup nearly $900 million it erroneously sent to creditors of troubled cosmetics company Revlon Inc., which includes Symphony Asset Management and HPS Investment Partners.

Citi's error raised questions about its operational resiliency, which prompted regulators to scrutinize the loan.

The bank emphasized that it quickly caught the error and was trying to recover the funds.