By Becky Yerak and Alexander Gladstone 

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.

Write to Becky Yerak at becky.yerak@wsj.com and Alexander Gladstone at alexander.gladstone@wsj.com

 

(END) Dow Jones Newswires

August 18, 2020 15:08 ET (19:08 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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