|Bid||0.0600 x N/A|
|Ask||0.0650 x N/A|
|Day's Range||0.0650 - 0.0700|
|52 Week Range||0.0400 - 0.1700|
|Beta (5Y Monthly)||0.41|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- Citigroup Inc. should have more than $500 million it says it mistakenly transferred to Revlon Inc. creditors returned, financial services trade groups told a federal judge ahead of a trial over the payments.Citi says an employee’s error caused it to accidentally send more than $900 million in August to Revlon lenders who were expecting a periodic interest payment, some of whom were engaged in a dispute with the struggling cosmetics giant. While the bank has recovered about $390 million, it has sued more than a half-dozen firms that have refused to return the money. A trial is scheduled to begin next month before U.S. District Judge Jesse Furman in Manhattan.On Wednesday, the trade groups filed briefs in the case in support of Citigroup, urging Furman to force firms that manage the loans for the creditors to return the funds. Those firms include Brigade Capital Management LP, HPS Investment Partners and Symphony Asset Management LLC.The groups said a court ruling allowing the firms to keep the money would expose banks that facilitate wire transfers and serve as administrative agents to unnecessary risk.‘Mistakes Do Happen’One of the briefs was filed by the Loan Syndications and Trading Association, a not-for-profit group that represents more than 500 firms involved in the origination, syndication and trading of commercial loans whose members include both Citigroup and most of the creditors involved in the case. The group said that while the syndicated loan market is largely automated, “mistakes do happen” and participants routinely return incorrect payments, as have many of the Revlon creditors.“We believe that regular participants in the syndicated loan market would be surprised and disappointed to find that the law entitles recipients to keep such payments,” the association said. “We are also firmly convinced that a ruling validating the retention of the payments in this case would undermine the smooth functioning of syndicated lending and the ability to transfer and assume loans under credit agreements by encouraging the kind of non-cooperative opportunistic behavior that destabilizes any market dependent on trust and transparency.”Read More: Citigroup Gets Freeze on Brigade Money in $900 Million ErrorThe creditors have argued that they should be able to keep the money as “discharge for value” under a 1991 New York court ruling that says a creditor can keep money transferred in error under certain circumstances. They had opposed the groups’ attempt to file briefs in support of Citigroup, saying they had “serious concerns” about bias.In another brief filed in support of Citigroup’s position, trade groups including the Bank Policy Institute argued that allowing the creditors to keep the funds would “impose overly broad and inequitable risks on banks that provide critically important wire transfer services to the public.”“Doing so would undermine the critical role banks play in providing this essential, low-cost payment system to participants in the financial markets,” they said. “A ruling in defendants’ favor would markedly expand the application of the discharge for value defense, and the natural outcome of such a ruling would be a reduction in the number of banks willing to offer wire transfers and an increase in charges and costs to market participants.”The case is Citibank NA v. Brigade Capital Management, 20-cv-6539, U.S. District Court, Southern District of New York (Manhattan).For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Vancouver, British Columbia--(Newsfile Corp. - November 25, 2020) - Fremont Gold Ltd. (TSXV: FRE) (FSE: FR2) (OTCQB: FRERF) ("Fremont" or the "Company") is pleased to announce that it has received the required permits from the Bureau of Land Management to launch its maiden drill program at the North Carlin gold project ("North Carlin" or "Project") located at the northern end of Nevada's prolific Carlin Trend (see Figure 1). Fremont has permitted 14 drill sites ...
(Bloomberg) -- Revlon Inc. says it got enough support from investors to close its debt exchange and pay down remaining obligations, eliminating the potential for a bankruptcy filing in the near future.The cosmetics company said in a statement Thursday that bondholders agreed to exchange about 69% of the company’s $343 million of bonds due 2021. Revlon had to come up with a way to pay down or otherwise eliminate the the debt by Nov. 16 to avoid triggering a cascade of other obligations coming due. Revlon said it will pay off the $106.8 million of notes not turned in to the swap at 100 cents on the dollar plus accrued interest.The exchange offer is the latest effort by billionaire Ronald Perelman’s cosmetics empire to ease its debt load and buy more time to focus on a business turnaround. Revlon said it determined all the conditions of the exchange were met and expects the deal to close Friday.“As a result, the company does not expect that any bankruptcy or insolvency proceeding will be necessary,” the statement said.Revlon has been trying to exchange or otherwise retire the bonds to avoid triggering more than $1 billion of secured debt payments. After receiving weak investor interest for earlier iterations of the deal, it warned that bankruptcy was a possibility if the swap failed and it lacked the liquidity to redeem the bonds.The deal eliminates certain bondholder protections, including some default provisions, for investors who hang onto the notes before Revlon pays them off in full on Dec. 14. Exchange participants receive cash or a combination of cash and new loans at a discount to par.Revlon has struggled to remain relevant and stem falling sales amid competition from Estee Lauder Cos. and a host of smaller companies that have used social media to lure away customers. It’s also dealing with the impact of the Covid-19 pandemic on its business, employees and supply chain.The exchange “represents an important step towards strengthening our capital structure and better positions us to focus on our future growth,” Chief Executive Officer Debra Perelman said in the statement.The New York-based company has more than 15 brands, including Elizabeth Arden and Elizabeth Taylor, which it markets in more than 150 countries. Revlon has been working for months to tame its debt load and won lender support to refinance $1.8 billion of debt earlier this year despite resistance from some investors.Revlon is scheduled to report its third quarter earnings results Thursday and will host a conference call at 5 p.m. in New York.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.