Citigroup Restates Earnings After Writing Down Revlon Loan
Revlon display. Shutterstock
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 said in a regulatory filing on Friday that it now has rights as a creditor to the troubled cosmetics giant after it lost a court battle over a payment mistakenly sent to a band of lenders to Revlon in August. It’s since written down a portion of the loan.
Separately in the filing, the bank said losses “related to certain legal matters” forced it to boost operating expenses in its institutional clients group by $390 million in the fourth quarter. That meant Citigroup’s net income for the final three months of the year came to $4.3 billion, compared with the $4.6 billion it reported in January.
Citigroup was trying to send a periodic interest payment to a group of Revlon’s lenders in August when instead it transferred $900 million, an amount equal to the full principal of the loan plus interest.
