Clear Channel banks' request for delay denied

By Jessica Hall

PHILADELPHIA (Reuters) - Clear Channel Communications Inc CCU.N said a Texas court on Monday dismissed a request by a group of banks to delay a trial over the funding of the $20 billion buyout of the radio station operator.

The banks on Monday asked to delay the June 2 trial until January, 2009, saying they needed more time to prepare, according to court documents obtained by Reuters.

The judge dismissed the banks' request, Clear Channel said in a statement late on Monday.

"We are thankful Judge (Lori) Massey wasted no time in rejecting the banks' latest attempt to postpone this trial," Clear Channel said in a statement.

"Hopefully the banks are running out of delay tactics, and they will soon face a Texas jury who will make them take responsibility for their actions," Clear Channel said.

The banks, which include Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), Credit Suisse Group (CSGN.VX: Quote, Profile, Research, Stock Buzz), Royal Bank of Scotland Group Plc (RBS.L: Quote, Profile, Research, Stock Buzz), Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz), could not be immediately reached for comment.

The private equity buyers -- Thomas H. Lee Partners and Bain Capital Partners -- have sued banks in Texas and New York courts -- seeking to force them to fund the deal. Clear Channel joined the Texas lawsuit, but is not a party in the New York case.

The banks were to provide more than $22 billion financing and earn more than $400 million in fees, but they balked when the debt markets deteriorated and asked for the terms of the deal to be changed, according to previous court documents.