Citi Trial Over $900 Million Payout to Revlon Lenders Now Dec. 9

(Bloomberg) -- The trial for Citigroup Inc.'s lawsuit seeking the repayment of millions of dollars the bank says it accidentally sent to Revlon Inc. lenders was postponed by a month to Dec. 9 after the judge remarked on a new wrinkle in the case.

U.S. District Judge Jesse Furman in Manhattan issued the order pushing the trial back from Nov. 9 on Wednesday. At a conference on Tuesday, Furman had granted Citigroup's request to seek information on the relationship between investment managers and Revlon creditors who have refused to return the money.

“All of this is leading me to think maybe we should revisit things and take a deep breath, and perhaps not rush this as much as we had originally contemplated,” he said.

Citigroup says an employee error caused it to send more than $900 million of its own money to a group of lenders expecting an interest payment on behalf of Revlon. The bank last month sued 11 investment managers for the Revlon creditors -- including Brigade Capital Management LP, HPS Investment Partners and Symphony Asset Management -- who are trying to hold on to the money as payment of Revlon's debt to them.

The case is Citibank NA v. Brigade Capital Management, 20-cv-6539, U.S. District Court, Southern District of New York (Manhattan).

Read More: Citi Cleared to Seek Information in $900 Million-Error Suit

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