Lenders To File To Add Clear Channel To New York Case
April 3, 2008 at 3:42 PM (PT)
The latest chapter in the CLEAR CHANNEL buyout saga has the company's lenders attempting to add CLEAR CHANNEL to a NEW YORK state Supreme Court breach of contract and fraud lawsuit filed by the buyout's private equity backers. The banks, through attorney GUY MILLER STRUVE, told the court THURSDAY that they will file an answer to a complaint by BAIN CAPITAL and THOMAS H. LEE PARTNERS as soon as FRIDAY that will ask to add CLEAR CHANNEL to the suit.
The NEW YORK case, an attempt by CLEAR CHANNEL's backers to force CITIBANK, DEUTSCHE BANK, MORGAN STANLEY, ROYAL BANK OF SCOTLAND, WACHOVIA, and CREDIT SUISSE to fund the buyout, is set for trial on MAY 5th or later, depending on Justice HELEN E. FREEDMAN's availability. CLEAR CHANNEL and the private-equity firms are also suing the lenders for specific performance and $26 billion in damages in TEXAS state court.
In a joint statement, the banks said THURSDAY that "We are pleased with today's outcome and hope that -- through the claims that we will be filing tomorrow and our request for an expedited hearing in NEW YORK, which includes all relevant parties -- we can bring this matter to a rapid resolution. The Bank Group remains willing to discuss a funding agreement consistent with the terms of the Commitment Letter."