Banks Ask New York Court To Toss Clear Channel Buyers Lawsuit

By: AP
By: AP

SAN ANTONIO (AP) - Banks being sued by Clear Channel
Communications and the private equity firm that wants to buy the
company fired back today.
Those banks are asking a New York state court to dismiss the
suit and to ignore requests for an expedited hearing.
The equity buyers, led by Bain Capital and Thomas H. Lee LLC,
filed suit last week against six banks. They claim the banks were
reneging on their commitment to help fund the $19.5 billion buyout.
The banks contend they were still negotiating and anxiously
awaiting documents needed to back the loans when they got word
through a news release they had been sued in New York and Texas
last week.
Clear Channel joined the banks in a separate lawsuit in Texas
court. A judge in that case set an April 8 court hearing date and
issued a temporary restraining order against the banks barring them
from intentionally sinking the deal. The order, issued just hours
after the suit was filed, was apparently obtained by going to the
judge's home that evening.
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(Copyright 2008 by The Associated Press. All Rights Reserved.)

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