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Banks, Private Equity Fight It Out Over Clear Channel
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An early May trial date may be delayed in the Clear Channel buyout mess.
Reuters reports a New York state judge “made no immediate ruling” on the banks’ request to dismiss a lawsuit seeking to force them to fund the buyout.
Two private equity firms sued Citigroup, Morgan Stanley, Credit Suisse Group, Royal Bank of Scotland Group, Deutsche Bank and Wachovia Corp. to force them to fund the buyout.
The banks say they are not yet in breach of contract according to the commitment they signed with the private equity firms. A lawyer for the latter says the bankers “cooked up a set of loan documents that are nuclear, draconian and punitive” in an attempt to void the contract, according to Reuters.
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