The six banks being sued by Clear Channel in Texas on Friday filed an emergency motion with the Texas Supreme Court, seeking to halt all proceedings in the Texas case and nix plans by a judge in San Antonio to begin trial on June 2nd. The banks claim Clear Channel and CC Media Holdings “wrongfully brought this case in Texas” and that it should instead be in New York, as required by the loan commitment letter between the banks and two private equity firms, Thomas H. Lee Partners and Bain Capital. Hogwash said Clear Channel and CC Media in their rapid response, although using legal jargon rather than such clear language. They argue that neither Clear Channel nor CC Media, the company created to acquire Clear Channel, were parties to the loan commitment letter, so Texas is the proper venue. And they deny that there is any “emergency” need to delay proceedings – rather, that any delay would be “exceedingly harmful” to them, since the 26.7 billion bucks buyout has a drop dead date of June 12th. The banks have requested a ruling on the emergency motion from the Texas Supreme Court by tomorrow.
