It seems like that perhaps makes it more likely everyone will want to settle quickly. Settlement money shouldn't be subject to a clawback, so Revlon comes out ahead. And a clawback doesn't help Citi either -- they're out the full sum. At that point, Citi's money flows to help Revlon's creditors.
What's even more interesting is that you're right that a clawback like that might actually happen. In theory, justice is blind. In practice, lots of courts exercise deep justice jurisprudence, and it's hard to argue Citi should get its money before Revlon's employees or similarly worthy parties.
That actually plays to Brigade's benefit slightly, I think. If this risk is there, Citi will definitely want to settle quickly.
What's even more interesting is that you're right that a clawback like that might actually happen. In theory, justice is blind. In practice, lots of courts exercise deep justice jurisprudence, and it's hard to argue Citi should get its money before Revlon's employees or similarly worthy parties.
That actually plays to Brigade's benefit slightly, I think. If this risk is there, Citi will definitely want to settle quickly.