I don't particularly like the credit-card analogies I'm seeing around here. There is a big difference; a credit card is an open line of credit, which is not the case for these loans.

After a credit card is paid off "in full" (for example's sake let's assume a 10k card), you can then use that to spend 10k. You still have access to 10k worth of "buying power".

A loan like this is different. Once it's paid, Revlon (even though this isn't Revlon's fault) can't just turn around and draw down the line again. That's the difference between a loan and a line of credit.

The fact that it is widely believed that Revlon will be bankrupt before actually paying off this loan just makes it more likely that Brigade is taking advantage of the situation with no true belief that this was nothing more than a mistake.

But it was not Revlon making the mistake. It was Citibanks mistake. They are not indebted to Brigade Capital. Revlon is.

If your bank would pay back your full credit card balance by accident, you would expect it to be able to get the money back, wouldn't you?

If it had been Revlon making the mistake this would be a different story.

> If your bank would pay back your full credit card balance by accident, you would expect it to be able to get the money back, wouldn't you?

If the bank paid off my entire credit card balance instead of the < 1% payment I had scheduled, without an instruction from me, and without debiting my account because I don't have the funds to do that entire amount, I don't think I would care all that much. My CC issuer probably wouldn't be interested in returning the money if they had reason to believe I'd never pay them back in full as well.

That just leaves the bank that cares. The bank that made the expensive mistake.

I’d expect the bank to eat the cost if they could not recover the funds.

Just because the receiver of the funds is not at fault does not mean the customer should take the hit.