Citibank actually has a business relationship with Brigade Capital, they're Brigade's contractor essentially, and they essentially COULD owe Brigade money themselves via this arrangement:
> As the administrator of the gargantuan arrangement, it was incumbent on Citibank to collect payments from Revlon and transfer it to the lenders, including Brigade Capital. The company was expected to transfer $1.5 million in interest payments to the hedge fund a few days back.
Brigade are claiming that his is Citibank paying money they owe, and has nothing to do with Revlon.
PS - I think Brigade will ultimately lose the court case. I think their arguments are easily unwound, but I suspect the court case will take a while because the argument isn't as black/white as it may first appear, there's actually a three-way relationship here.
What about the interest accrued from keeping the money for a time?