Clear Channel battle turns ugly

The New York Times recounts how Bain Capital and THL Partners officials received a misfired email--one that was meant for anyone but them. It seemed to be all about how the six banks that had agreed to finance the deal were planning to renege. The deal went downhill from there, and now has ended up in court. Clearly, the banks have an incentive to get out of loaning the buyers the money to buy Clear Channel. They would end up taking losses that exceed the break up fee. But you can't blame the buyers for wanting to compel them. We'll see how this ends up. Banks certainly have a lot on the line. Perhaps if they stall long enough, the leveraged loan market will revive a bit, paving the way for a new deal.

For more:
- here's the New York Times article

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