Citi Blocks Firms That Kept Revlon Payout From New Debt Deals

The transcript discusses Citigroup's conflict with hedge funds over an errant payment to Revlon lenders. Citigroup is now treating itself as a creditor to Revlon and has decided to exclude certain hedge funds from future debt deals. This decision impacts the funds' access to dealflow, affecting their investors. The situation has led to a lawsuit, and banks are revising their loan protection documentation to prevent similar issues.

What potential consequences could arise for Citigroup and the hedge funds from this situation?

What changes are banks making in response to the situation described?