The New York Post reported that Pentwater Capital Management, a hedge fund with a big investment in Clear Channel Communications, has filed its own lawsuit against the banks who were supposed to finance the deal. And the Post says Highfields Capital, the largest Clear Channel shareholder, is planning to sue the banks as well. Pentwater reportedly owns about $100 million worth of Clear Channel stock. Highfields’ stake of 38 million shares would be worth about $1.5 billion at the buyout price.
RBR/TVBR observation: The pressure on the banks continues to build. Pentwater filed its lawsuit in Texas, where the banks have repeatedly lost in efforts to delay the 26 billion bucks lawsuit by Clear Channel itself or to move it to federal court. Now the hedge funds want a little of that fast-moving Texas justice as well. Will the banks fold as the potential liability mounts?