Banks Lose Bid To Nix Clear Channel Lawsuit

SAN ANTONIO (CN) - A Texas appeals court refused to dismiss a lawsuit by Clear Channel Communications and two private equity firms seeking to force several banks, including Citigroup, to finance the $20 billion buyout of Clear Channel.

A three-justice panel issued a one-page order rejecting the banks' motion for emergency relief and petition for writ of mandamus, saying they were not entitled to the relief sought.

U.S. District Judge Joe Brown Jr. set a June 2 trial to determine whether private equity firms Thomas H. Lee Partners and Bain Capital could obtain the financing needed for the buyout of the largest U.S. radio station operator.

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