TORONTO, Dec. 31, 2012 /CNW/ - CIBC (TSX:CM) (NYSE:CM) announced today it has
reached a settlement with the Lehman Estate.
Following the September 15, 2008 bankruptcy filing of Lehman Brothers
Holdings, Inc. (Lehman), CIBC recognized a gain of US$841 million, resulting
from the reduction to zero of its unfunded commitment on a variable funding
note (VFN) issued by a collateral debt obligation (CDO). This reduction
followed certain actions of the indenture trustee for the CDO following the
September 15, 2008 bankruptcy filing of Lehman, the guarantor of a related CDS
agreement with the CDO.
In September 2010, the Lehman Estate instituted a proceeding against numerous
global financial institutions,indenture trustees and note-holders, including
CIBC, relating to this and more than 40 other CDOs, claiming that the
indenture trustees' actions were improper and thatCIBC was obligated to fund
Under the terms of the agreement, CIBC will remit US$149.5 million ($110.3
million after tax) to the Lehman Estate.
Stephen Forbes (416) 728 7795
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-0- Dec/31/2012 13:30 GMT
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