Clear Channel Banks Seek Lawsuit Dropped In Texas
May 6, 2008 at 5:22 AM (PT)
The banks being sued in the CLEAR CHANNEL COMMUNICATIONS buyout case on MONDAY filed a new motion asking a TEXAS court to dismiss a lawsuit against them, court documents show. REUTERS reports that the banks, which were to provide more than $22 billion financing and earn more than $400 million in fees for the leveraged buyout, argue that the lawsuit filed against them in TEXAS is "not ripe or justiciable and should be dismissed".
They argue that the suit is based on events that have not -- and may not -- occur, as a JUNE 12th deadline to complete the deal is still pending, according to a copy of the filing obtained by REUTERS and dated MONDAY.
BEXAR COUNTY State District Judge JOE F. BROWN JR in APRIL had refused a separate request by the banks to dismiss the TEXAS lawsuit, as he set a JUNE 2nd trial date. In that request, the banks had argued that the TEXAS case should be dismissed and folded into the litigation under way in NEW YORK.
In the TEXAS case, CLEAR CHANNEL, THL and BAIN claim "tortious interference" with the deal which "if allowed to continue and succeed, could result in immeasurable damages" exceeding $26 billion, according to the suit.
In NEW YORK, the private equity firms are seeking "specific performance" of a commitment letter that details the plans to fund the deal. Specific performance is when one party asks a judge to order another party to stick to a contract.