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Clear Channel asks case to be heard in state court
NEW YORK (Reuters) - Radio operator Clear Channel Communications Inc (CCU.N) and the private equity firms trying to buy it asked on Tuesday for their lawsuit against six banks to be sent back to Texas State Court to be heard.
The banks filed on Thursday to move the case from Bexar County court to a federal court in the state, a copy of the filing, in the Western District of Texas, showed.
Clear Channel argued on Tuesday that the case should be remanded to Texas State Court "immediately in order that the parties may proceed on the merits of plaintiffs' claims" and move forward with a previously set April 8 hearing.
Private equity firms Thomas H Lee Partners and Bain Capital Partners filed complaints last week against Citigroup Inc (C.N), Morgan Stanley (MS.N), Credit Suisse Group (CSGN.VX), Royal Bank of Scotland Group Plc (RBS.L), Deutsche Bank AG (DBKGn.DE) and Wachovia Corp WB.N to force them to fund the $20 billion buyout of Clear Channel.
The private equity firms filed the lawsuits in New York and Texas last Wednesday, with Clear Channel joining the suit in Texas.
The buyout firms and Clear Channel claim the banks balked at providing financing when the debt markets deteriorated and asked for a change in terms of the deal that prevented them from reneging on their funding commitments.
The banks fought back on Monday, asking a New York state court to hear their request to dismiss the claims against them.
(Reporting by Megan Davies; Editing by Brian Moss)
