Judge Dismisses CC As Defendant In Bank's N.Y. Suit
April 28, 2008 at 5:00 AM (PT)
Judge HELEN FREEDMAN dismissed CLEAR CHANNEL and the shell company created for its buyout as defendants in the case brought in NEW YORK by the lenders battling CLEAR CHANNEL and its buyout partners.
The NEW YORK case brought by CITIGROUP and other lenders will continue against BAIN CAPITAL and THOMAS H. LEE PARTNERS, with a trial set for MAY 5th, but FREEDMAN ruled FRIDAY that the portion of the case involving CLEAR CHANNEL itself belongs in TEXAS court because CC and the shell company are "strangers to the commitment letter who are not bound by any of its terms."
A statement issued by CLEAR CHANNEL said "We are grateful that Justice FREEDMAN sent our case back to TEXAS where it belongs. The banks can have their lawyers churn out as many motions and briefs as they want, but ultimately this case boils down to a simple question of right and wrong, and they will face a jury in TEXAS to decide that question."