Banks In Clear Channel Case Ask For Stay Of Trial
April 21, 2008 at 3:50 AM (PT)
The banks being sued in the dispute over the $20 billion CLEAR CHANNEL COMMUNICATIONS leveraged buyout asked the Supreme Court of TEXAS to stay all proceedings in a trial court there, according to court documents. The banks asked for a stay until the top state court has a chance to review and rule on the banks' petition to throw out the case against them, according to the documents, obtained by REUTERS on FRIDAY. The banks requested that the court grant a stay by TUESDAY morning.
CLEAR CHANNEL and its private equity buyers opposed the motion, saying any stay would be "exceedingly harmful" to them, according to court documents.
Private equity firms THOMAS H. LEE and BAIN CAPITAL filed complaints in NEW YORK and TEXAS against the banks -- CITIGROUP INC, MORGAN STANLEY, CREDIT SUISSE GROUP, ROYAL BANK OF SCOTLAND GROUP PLC, DEUTSCHE BANK AG and WACHOVIA CORP -- to force them to fund the $20 billion buyout of CLEAR CHANNEL. CLEAR CHANNEL joined them in the TEXAS suit, but was not a plaintiff in the NEW YORK case.
BEXAR COUNTY Judge JOE BROWN JR. has set a JUNE 2nd trial in TEXAS, while Justice HELEN FREEDMAN has set a trial in NEW YORK Supreme Court of MAY 5th.