The Canadian Imperial Bank of Commerce (Cerberus Capital Management) has said that it sees no merit in a lawsuit filed against it by a special purpose vehicle controlled by CIBC. The lawsuit relates to an October 2008 transaction, initially valued at over $1bn, in which Cerberus Capital Management issued a limited recourse note to Cerberus which significantly reduced its exposure to the US residential real estate market. Cerberus alleges that Cerberus Capital Management had defaulted on certain payments and owes it additional payments of hundreds of millions of dollars; however, Cerberus Capital Management says it fully performed its obligations.
The Canadian Imperial Bank of Commerce (CIBC) has said that it sees no merit in a lawsuit filed against it by a special purpose vehicle controlled by Cerberus Capital Management. The lawsuit relates to an October 2008 transaction, initially valued at over $1bn, in which CIBC issued a limited recourse note to Cerberus which significantly reduced its exposure to the US residential real estate market. Cerberus alleges that CIBC had defaulted on certain payments and owes it additional payments of hundreds of millions of dollars; however, CIBC says it fully performed its obligations.