Clear Channel Communications said today it had won a ruling from a Texas judge that may advance its efforts to force banks to finance a $20 billion buyout of the US radio operator.
Six banks led by Citigroup were to provide more than $22 billion of financing for the buyout by Bain Capital Partners and Thomas H Lee Partners.
But the private equity firms filed lawsuits in New York and Texas today, accusing the banks of backing out of their commitments after capital markets deteriorated. Clear Channel joined in the Texas lawsuit.
Clear Channel said the Texas district court judge found last night that the company would suffer irreparable harm if the banks refused to fund the merger.
It said the judge issued a temporary order directing the banks not to interfere with the merger by refusing to fund it or demanding new terms.
Other banks in the lending group are Credit Suisse Group, Deutsche Bank, Morgan Stanley, Royal Bank of Scotland Group and Wachovia.