News & Analysis as of

Lenders Citibank

Vinson & Elkins LLP

Second Circuit Determines Agent’s Mistaken Payment of Principal to Lenders Does Not Invoke “Discharge-For-Value” Exception to...

Vinson & Elkins LLP on

On September 8, 2022, a three-judge panel in the United States Court of Appeals for the Second Circuit (the “Second Circuit”) reversed the United States District Court for the Southern District of New York (the “District...more

Kelley Drye & Warren LLP

What Inquiring Minds Should Have Known – Second Circuit Ruling on Inquiry Notice Saves Citibank from $900 Million Payment Mistake

Kelley Drye & Warren LLP on

A recent decision by the Second Circuit Court of Appeals has saved Citibank from the ramifications of an internal error that could have cost it nearly $900 million. Although the recipients of an unintended transfer of...more

Cadwalader, Wickersham & Taft LLP

Second Circuit Rules in Favor of Citibank in Accidental $500m Transfer in Revlon Loan Transaction

In a decision rendered September 8, 2022, a three-judge panel for the United States Court of Appeals for the Second Circuit (the “Court”) vacated a February, 2021 decision by the United States District Court for the Southern...more

Eversheds Sutherland (US) LLP

The Windfall Wire: Second Circuit panel says Citibank may recover nearly $500 million in inadvertently wired funds

​​​​​​​Citibank’s balance sheet is likely breathing a sigh of relief. A Second Circuit panel held that the bank may finally recoup nearly $500 million in funds that it inadvertently wired to lenders almost two years ago. US...more

McGuireWoods LLP

I Can’t Get No Satisfaction … 2nd Circuit Reverses, Remands Revlon Decision

McGuireWoods LLP on

A three-judge panel of the 2nd U.S Circuit Court of Appeals on Sept. 8, 2022, reversed a decision of the U.S. District Court for the Southern District of New York regarding lenders who refused to return funds that were...more

Troutman Pepper

No $500M Windfall for Lenders in Mistaken Wire Transfer Case

Troutman Pepper on

On September 8, Second Circuit ruled that lenders must return $500 million to Citibank, which had mistakenly wired the funds to them. The decision vacates a 2021 Southern District of New York ruling, which held that the...more

Hanzo

The Lessons From Citibank's Mistaken $900 Million Transfer

Hanzo on

I read this story about Citibank's mistaken transfer—which cost it about half a billion dollars—a while back, and the sheer improbability of the mistake struck me. How could a banking giant make a blunder of such staggering...more

Shumaker, Loop & Kendrick, LLP

A 'Black Swan' Event, Eurofenix Spring 2021

In the context of a series of complex re-financings and roll-up transactions by Revlon in May and June, 2020, human error caused a $500 million loss for Citibank. On 16 February 2021, in the case of In re Citibank August...more

Eversheds Sutherland (US) LLP

The billion dollar bewail: Citibank cannot recover $900 million inadvertently wired to lenders

In what most will find a shocking and unjust ruling, on February 16, 2021, Judge Furman of the United States District Court for the Southern District of New York ruled in In re Citibank August 11, 2020 Wire Transfers that...more

Cadwalader, Wickersham & Taft LLP

An Interpretation of ‘Discharge for Value’

As most in the loan market are by now aware, the United States District Court in the Southern District of New York issued a decision on February 16, 2021 In Re Citibank August 11, 2020 Wire Transfers that certain lenders were...more

Cadwalader, Wickersham & Taft LLP

When “Six Eyes” Just Aren’t Enough

On February 16, 2021, the United States District Court in the Southern District of New York (the “Court”) issued a decision In Re Citibank August 11, 2020 Wire Transfers1 that upheld the “discharge for value” doctrine and...more

Lowenstein Sandler LLP

Citibank’s $900 Million Black Swan

Lowenstein Sandler LLP on

On February 16, Judge Furman of the Southern District of New York handed down a ruling in In re Citibank August 11, 2020 Wire Transfers concluding that Citibank could not recover $900 million inadvertently wired to lenders. ...more

McGuireWoods LLP

SDNY Judge Rules Lenders Can Retain Mistakenly Paid Funds

McGuireWoods LLP on

In a decision issued Feb. 16, 2021, Judge Furman of the U.S. District Court for the Southern District of New York held that lenders who were mistakenly paid in full by Citibank (the “Agent”) could retain those funds because...more

Shumaker, Loop & Kendrick, LLP

Client Alert: A “Black Swan Event”: New York Federal Court Rules that Lenders are Entitled to Keep $500 Million Mistakenly Paid by...

We are closely following Revlon on behalf of several creditor interests. In the context of a series of complex re-financings and roll-up transactions by Revlon in May, 2020, human error caused a $500 million loss for...more

Burr & Forman

Chorus of Critics Grows Again for Third DCA’s Beauvais Opinion on Statute of Limitations, Rehearing Granted by Third DCA

Burr & Forman on

The opinion of Florida’s Third District Court of Appeal in Deutsche Bank Trust Co. Americas v. Beauvais, No. 3D14-575, 2014 WL 7156961 (Fla. 3d DCA Dec. 17, 2014) has been a lightning rod for criticism from federal courts in...more

15 Results
 / 
View per page
Page: of 1

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide