No Ruling Issued By NY Judge In CC Case
April 25, 2008 at 5:40 AM (PT)
After an hour of sometimes spirited court arguments, a NEW YORK judge THURSDAY didn't issue a ruling in a closely watched request by a group of banks to toss out a lawsuit concerning the disputed sale of CLEAR CHANNEL COMMUNICATIONS, reports CNN MONEY. The private-equity firms leading the deal, BAIN CAPITAL LLC and THOMAS H. LEE PARTNERS, have accused the bank group of illegally balking on commitments to provide about $22 billion in financing toward the sale. The banks have asked the NEW YORK state court to dismiss the breach of contract lawsuit against them.
Justice HELEN FREEDMAN may rule later on the banks' request for summary judgment in the case. The banks involved in the deal are CITIGROUP, DEUTSCHE BANK AG, MORGAN STANLEY, ROYAL BANK OF SCOTLAND GROUP PLC, CREDIT SUISSE GROUP and WACHOVIA.
After the hearing, BRUCE KAPLAN, an attorney for BAIN and THL PARTNERS said it would be "presumptuous" to handicap the case based on Justice FREEDMAN's non- ruling.
If Justice FREEDMAN allows the lawsuit to continue, the court has slated a MAY 5th trial. Justice FREEDMAN on THURSDAY indicated a trial could likely be delayed by a few days, as she's overseeing another matter that may drag past MAY 5th.