Six big banks have gotten a judge in San Antonio to delay until Friday a hearing that had been set for yesterday. Clear Channel, which had sued the banks, agreed to the delay. So it will be a few more days before we know whether or not the judge will issue a permanent injunction that effectively orders the banks to fulfill their 22 billion-plus in loan commitments for the private equity buyout of Clear Channel Communications.
Another important hearing will be next Tuesday, April 15th. That’s when a judge in New York will rule on Clear Channel’s motion to dismiss an effort by the banks to add Clear Channel itself as a defendant to their counterclaims against the two buyout firms, Thomas H. Lee Partners and Bain Capital.
RBR/TVBR observation: As we noted before, Clear Channel is 2-for-2 so far in the rulings that count in this legal battling – first getting a temporary restraining order against the banks from a Texas judge and secondly for getting a federal judge to turn the banks down and send the case back to the Texas courts. Should the banks fail in their effort to get Clear Channel made a party to the New York lawsuit next week that would really put the pressure on the banks to come to a settlement and avoid trial in the Texas state courts.