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Clear Channel Buyers Whine about Deal in Letter to Banks

Clear Channel’s private equity buyers sent a letter to the banks that are financing the deal which said that the only fundamental issue dividing the parties is the fact that the banks changed an agreement for seven-and-a-half year long-term financing to a three-year bridge.

The banks responded that there are many issues still to resolve, and that any suggestion otherwise is “just nonsense,” according to Bloomberg News (via Radio Ink). The banks have not responded to requests for explanations on why their new proposal is inconsistent with terms that were previously agreed-upon, the buyer letter said.

The buyers, Thomas H. Lee Partners and Bain Capital, have sued the bank group over their failure to fund the buyout. Clear Channel has also filed a suit. The Texas courts granted Clear Channel a restraining order against the banks; a hearing on the restraining order is set for April 8. The banks have asked that the Texas lawsuit be moved to federal court.