Clear Channel Banks Ask For Delay In Texas Trial
April 29, 2008 at 5:22 AM (PT)
CLEAR CHANNEL COMMUNICATIONS said a TEXAS court on MONDAY dismissed a request by a group of banks to delay a trial over the funding of the $20 billion buyout of the radio station operator. The banks on MONDAY asked to delay the JUNE 2nd trial until JANUARY, 2009, saying they needed more time to prepare, according to court documents obtained by REUTERS.
The judge dismissed the banks' request, CLEAR CHANNEL said in a statement late on MONDAY.
"We are thankful Judge (LORI) MASSEY wasted no time in rejecting the banks' latest attempt to postpone this trial," CLEAR CHANNEL said in a statement. "Hopefully the banks are running out of delay tactics, and they will soon face a TEXAS jury who will make them take responsibility for their actions."
Hopefully the banks are running out of delay tactics, and they will soon face a Texas jury who will make them take responsibility for their actions.
The banks, which include CITIGROUP, MORGAN STANLEY, CREDIT SUISSE GROUP, ROYAL BANK OF SCOTLAND GROUP, DEUTSCHE BANK and WACHOVIA, could not be immediately reached for comment.
The private equity buyers -- THOMAS H. LEE PARTNERS and BAIN CAPITAL PARTNERS -- have sued banks in TEXAS and NEW YORK courts -- seeking to force them to fund the deal. CLEAR CHANNEL joined the TEXAS lawsuit, but is not a party in the NEW YORK case.
The banks were to provide more than $22 billion financing and earn more than $400 million in fees, but they balked when the debt markets deteriorated and asked for the terms of the deal to be changed, according to previous court documents.