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 Clear Channel Communications Inc. and the private equity firms intent on purchasing it scored a quick initial victory in their lawsuit against the banks committed to financing the leveraged buyout.On Wednesday evening, Judge John Gabriel of the Bexar County district court in Texas found that the company would suffer irreparable harm if the banks refused to fund the deal, and granted a temporary restraining order. Thomas H. Lee Partners LP and Bain Capital LLC plan to take the company private in a $22.1 billion LBO; that could costs the banks billions thanks to the tight debt markets. The deal should have closed Wednesday, but talks between the equity sponsors and the banks lenders fell apart on the refinancing of roughly $4 billion of outstanding bonds when they begin to come due in three years, prompting the buyers to file suit late Wednesday. A Thursday morning Clear Channel press release stated that: Judge Gabriel ordered that the Banks, among other things, must not "interfere with or thwart consummation of the Merger Agreement" by 1) refusing to fund the Merger transaction, 2) insisting on terms that are inconsistent with the Commitment Letter, or 3) refusing to act in good faith in the drafting of definitive loan documents. Additional coverage will come later in The Daily Deal and on TheDeal.com. - George White See Deal.com story on Clear Channel restraining order See Clear Channel press release See Dealscape post on Clear Channel lawsuit See press release from Clear Channel buyout sponsors (pdf) See the Texas court complaint filing against the banks (pdf) See the New York court complaint filing against the banks (pdf) See the New York court complaint filing against Deutsche Bank (pdf) See Dealwatch: Clear Channel CategoriesPrivate capital video
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