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. In response to questions from CNBC, CIBC's chief financial officer, David Rosenberg, said: "We have not received any request for information or comment on this matter and we don't anticipate receiving any."
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.