A federal judge granted Citigroup Inc.’s request to freeze roughly $175 million the bank said it paid hedge-fund manager Brigade Capital Management LP by mistake on a loan owed by troubled cosmetics company Revlon Inc. Brigade has taken the position it isn’t obligated to return the money it received last week, its share of a nearly $900 million loan payment owed by Revlon. The ruling by Manhattan U.S. District Judge Jesse Furman marks an initial victory for Citi before the judge fully evaluates the dispute over whether Brigade can keep the money. Another court hearing was scheduled for late August, when Brigade must explain why it shouldn’t have to give the money back, according to the order. Until then, Brigade can’t withdraw, transfer or otherwise dispose of the money, the judge said.

Source: Wall Street Journal August 18, 2020 18:54 UTC