The six banks who were supposed to fund the private equity buyout of Clear Channel Communications have asked a New York state court to rule that their liability is limited to 600 million bucks if the deal doesn’t go through. That is obviously a lot less than the 26 billion-plus that Clear Channel has sued the banks for in a Texas court, but, like so many things in this contest of dueling lawsuits, it is not clear what impact, if any, such a ruling in New York would have on the Texas case. The banks are also trying to draw Clear Channel itself into the New York case, which Clear Channel’s lawyers are certain to vigorously oppose, since it was not a signatory to the commitment letter that specified that any legal proceedings would be in New York. The banks had been sued only by Thomas H. Lee Partners and Bain Capital in New York, while they had been sued by Clear Channel and CC Media in Texas. On Friday the banks asked the New York judge to dismiss the suit by TH Lee/Bain as the banks then filed counterclaims against TH Lee/Bain and Clear Channel.
RBR/TVBR observation: OK, we have figured out who is definitely going to win this. No doubt at all. We are 100% sure. The winner will be THE LAWYERS!