Representatives from Clear Channel and the private equity buyers, led by Bain Capital and Thomas H. Lee LLC, met Thursday - the day after a temporary restraining order was issued to bar the banks from purposely sinking the deal. It was also the day previously set for the closing of the buyout.

But the lenders didn't show, and Clear Channel said in a filing with the Securities and Exchange Commission that "the company continues to be ready, willing and able to consummate the merger ... The company is unable, however, to estimate a closing date at this time and cautions the markets that a closing may not occur."

Clear Channel shares, which have been volatile since fear that the deal could collapse set in, were down $1.55, or 5.2%, to $28.05 in Friday afternoon trading.

Clear Channel and the equity buyers sued six banks - Citigroup Inc., Morgan Stanley, Credit Suisse Group, The Royal Bank of Scotland, Deutsche Bank AG and Wachovia Corp. - on Wednesday, saying they were trying to renege on their financing commitment.

The financing, negotiated during the heady days of ever-larger leveraged buyouts, would cost the banks an estimated $3 billion to $4 billion if the deal closes. Bain, THL and Clear Channel argued in their lawsuits that the banks tried to undermine the deal by subsequently adding unreasonable terms to the loan.

Source: Cnn.com

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