US radio station operator says judge orders banks to fund buyout

AFP, March, 2008

WASHINGTON (AFP) — Clear Channel Communications said Thursday a judge has barred a group of banks from pulling out of funding for a 19.5-billion-dollar private equity buyout of the big radio station operator.

Clear Channel said a temporary restraining order issued late Wednesday by a Texas judge would allow time for the banks and the purchasers, Bain Capital Partners and Thomas H. Lee Partners, to finalize the buyout.

The US radio and billboard giant joined a lawsuit, filed on Wednesday in Bexar County, Texas, by the two private equity funds seeking to prevent the banks from reneging on their commitment to finance the takeover.

Clear Channel said that Texas District Court Judge John Gabriel "clearly recognized the importance of the banks' agreement and duty to provide debt financing to the merger."

Gabriel "found in favor of Clear Channel's claim that irreparable harm would result if the banks ...