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CIBC says Cerberus lawsuit against it lacks merit

Published 2015-11-02, 08:29 a/m
© Reuters. CIBC says Cerberus lawsuit against it lacks merit
CM
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TORONTO, Nov 2 (Reuters) - The Canadian Imperial Bank of
Commerce CM.TO said on Monday it saw no merit in a lawsuit
filed against it by a special purpose vehicle controlled by U.S.
private equity firm Cerberus Capital Management.
The lawsuit filed late last week in New York relates to an
October 2008 transaction in which CIBC issued a limited recourse
note to Cerberus which significantly reduced its exposure to the
U.S. residential real estate market, during the depths of the
financial crisis.
Cerberus alleges that CIBC had defaulted on certain payments
and owes it additional payments of hundreds of millions of
dollars.
CIBC says it had satisfied all its obligations by making 84
monthly payments totaling more than $1.24 billion. It claims
Cerberus had accepted the payments without question and was now
manufacturing a new interpretation of the deal.
CIBC said it had fully performed its obligations in respect
to its agreement with Cerberus and believed Cerberus' lawsuit
was without merit.

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