TORONTO, Nov. 2, 2015 /CNW/ - CIBC says there is no merit to the lawsuit filed on Oct. 30, 2015 by a special purpose vehicle controlled by Cerberus Capital Management L.P ("Cerberus") and that it will vigorously defend itself against this action.
The lawsuit, filed in Federal Court in Manhattan, New York, relates to an October 2008 transaction in which CIBC issued a limited recourse note to Cerberus which significantly reduced CIBC's exposure to the U.S. residential real estate market. In 2011, CIBC subsequently sold a residual interest in the specified payment streams to Cerberus.
Since 2008, CIBC has satisfied its obligations including making 85 monthly payments totaling more than $1.24 billion, which Cerberus has accepted without question. Only now has Cerberus manufactured an entirely new interpretation of the deal, claiming CIBC has defaulted and purportedly owes it unspecified additional payments of "at least hundreds of millions of dollars". This is wholly inconsistent with the agreement, the intent of both parties and the performance of both CIBC and Cerberus since 2008.
CIBC has fully performed its obligations with respect to its agreement with Cerberus and believes that Cerberus' lawsuit is without merit. CIBC will defend itself vigorously.
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Wholesale Banking - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.
For further information:
Kevin Dove, Head of External Communications, CIBC, 416-980-8835, email@example.com.