NY Judge Reserves Clear Channel Judgment
A New York state judge on Thursday made no immediate ruling on a group of banks' request to dismiss a lawsuit seeking to force them to fund the $20 billion leveraged buyout of Clear Channel Communications .
After hearing an hour of oral arguments, New York State Supreme Court Judge Helen Freedman did not indicate when she would rule on the request. A May 5 trial date in the case may be delayed, the judge said.
"Don't look too forward to May 5," she said. "I might have to extend it a few days after."
Private equity firms Thomas H. Lee Partners and Bain Capital Partners sued the banks -- Citigroup, Morgan Stanley,Credit Suisse Group, Royal Bank of Scotland Group, Deutsche Bank, and Wachovia -- to force them to fund the buyout of Clear Channel.
The banks are accused of balking at providing financing after credit markets deteriorated last year.