Clear Channel banks ask for delay in Texas trial
Written on April 30, 2008
Clear Channel Communications Inc (CCU.N: Quote, Profile, Research) 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 2 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,” Clear Channel said.
The banks, which include Citigroup Inc (C.N: Quote, Profile, Research), Morgan Stanley (MS.N: Quote, Profile, Research), Credit Suisse Group (CSGN.VX: Quote, Profile, Research), Royal Bank of Scotland Group Plc (RBS.L: Quote, Profile, Research), Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research) and Wachovia Corp (WB.N: Quote, Profile, Research), could not be immediately reached for comment.
The private equity buyers — Thomas H faxless payday advance. 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.
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