Clear Channel trial adjourned until 2 p.m. Tuesday

NEW YORK (Reuters) - The New York trial over the $20 billion buyout of radio station operator Clear Channel Communications Inc was adjourned until 2 p.m. EDT on Tuesday, the court said.

Talks are underway for a settlement, with the banks potentially agreeing to fund the buyout at $36 a share -- significantly lower than the deal for $39.20 per share, the Wall Street Journal said.

Clear Channel (CCU.N) struck the deal to be bought by private equity firms Thomas H. Lee Partners (THL) THL.UL and Bain Capital at the peak of the private equity boom last year. The market has changed drastically since then, with the cost of financing leveraged loans skyrocketing.

The deal descended into litigation this year, when THL and Bain sued in New York and Texas against six Wall Street banks -- 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 enforce their agreement to fund the buyout.

(Reporting by Leslie Gevirtz in New York, writing by Jessica Hall in Philadelphia, editing by Jeffrey Benkoe)