A group of banks funding the private equity buyout of Clear Channel have agreed to enter binding arbitration to resolve their dispute about backing the $19.4 billion deal, but private equity firms Thomas H. Lee and Bain Capital Partners have turned down the offer.
In a letter delivered to the private equity firms, the banking consortium claims it is willing to abide by the decision of an independent arbitrator to resolve the dispute within the next six weeks.
“The banks remain willing to fund the Clear Channel acquisition,” said the letter from Citigroup, Morgan Stanley, Credit Suisse Group, Royal Bank of Scotland, Deutsche Bank and Wachovia.
The private equity firms and Clear Channel recently sued the banks in
In return for agreeing to arbitration, the banks are demanding the court actions be dropped.
The banks face billions in losses if the deal is completed because of the credit-market turmoil that has made it impossible for them to package the leveraged debt and sell it off. With debt marked down by 15%, the banks would take a hit of nearly $3 billion on the $22 billion it is committed to lend to fund the deal, with $18 billion of that as senior secured loans.
And you thought your credit card debt was bad.
THE COUNT: COLDPLAY IS HOT, COUNTRY'S COOKIN' IN THE U.K.
The latest tidbits from the bustling live sector (3/28a)
SONG REVENUE:
A STYLISTIC STEW MC, divas and singer-songwriters rub elbows. (3/28a)
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THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
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