Dec 2 (Reuters) – Canadian Imperial Financial institution of Commerce (CIBC) (CM.TO) stated on Friday it might attraction a New York court docket’s ruling in a lawsuit introduced in opposition to the financial institution by an entity of U.S. personal fairness agency Cerberus Capital Administration.
Cerberus had alleged that CIBC defaulted on sure funds and is in search of damages of $1.067 billion. CIBC stated it had glad all its obligations.
The court docket issued a legal responsibility ruling in opposition to the lender, however has not decided how a lot it should pay. The events will get to current arguments on the damages at a listening to on Dec. 19, CIBC stated.
The lawsuit, filed in 2015, pertains to an October 2008 transaction through which CIBC issued a restricted recourse notice – a type of debt – to the Cerberus-controlled fund in alternate for an funding.
The Cerberus funding had helped CIBC handle and considerably scale back its publicity to the U.S. residential actual property market through the depths of the monetary disaster.
CIBC stated it expects to acknowledge a provision tied to the case in its first-quarter outcomes due in February, with out specifying numbers. The financial institution had thus far believed that the case “was extra doubtless than to not prevail at trial”, it added.
New York-based Cerberus didn’t instantly reply to a request for remark.
Authorized complications have pursued some corporations virtually a decade and a half after the monetary disaster. In October, Financial institution of America (BAC.N) agreed to pay bond insurer Ambac Monetary Group (AMBC.N) $1.84 billion, bringing to an in depth the final of the lender’s main lawsuits stemming from the crash.
Reporting by Niket Nishant in Bengaluru; Enhancing by Devika Syamnath
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