CC Asks NY Court To Dismiss Bank Counterclaims
April 16, 2008 at 6:19 AM (PT)
CLEAR CHANNEL COMMUNICATIONS asked a NEW YORK state judge TUESDAY to dismiss counterclaims brought against it by a group of banks embroiled in a dispute over financing of the company's stalled $19.4 billion buyout by two private-equity firms, reports DOW JONES. At a hearing TUESDAY, MARC S. DREIER, a lawyer for CLEAR CHANNEL, argued that it has a pending case against the banks in TEXAS, which is the proper venue for any dispute involving the company directly. A separate lawsuit in TEXAS is seeking $26 billion in damages from the banks.
"Their purpose is to avoid litigation in another court," DREIER said.
The banks, in their counterclaims filed earlier this month, asked that the NEW YORK court enter a declaration that the banks' potential liability is limited to $600 million or less.
NEW YORK State Supreme Court JUSTICE HELEN E. FREEDMAN reserved decision on the motion to dismiss on TUESDAY, saying she hopes to be as expeditious as possible in deciding whether CLEAR CHANNEL should be a party in the NEW YORK case.
Last month, buyout firms THOMAS H. LEE PARTNERS and BAIN CAPITAL LLC filed lawsuits in state courts in NEW YORK and TEXAS, alleging that CITIGROUP INC., MORGAN STANLEY, CREDIT SUISSE GROUP, ROYAL BANK OF SCOTLAND GROUP, DEUTSCHE BANK and WACHOVIA CORP. were improperly trying to forgo funding the deal.
In connection with CLEAR CHANNEL COMMUNICATIONS, INC.’s previously announced tender offer for its outstanding 7.65% Senior Notes due 2010 and CLEAR CHANNEL’s subsidiary AMFM OPERATING INC.’s previously announced tender offer for its outstanding 8% Senior Notes due 2008, CLEAR CHANNEL announced TODAY (4/16) that it has extended the date on which the tender offers are scheduled to expire from 8a ET on APRIL 18th, 2008 to 8a ET on APRIL 25th, 2008 and the consent payment deadline for the Notes from 8a ET on APRIL 18th, 2008 to 8a ET on APRIL 25th, 2008.