Clear Channel trial to get underway

The court battle pitting six banks--including Citigroup, Deutsche Bank, Morgan Stanley, Wachovia--against private equity firms Bain Capital and THL Partners is expected to get underway next week. You can bet it will be closely watched. The private equity firms are aiming to compel the banks to go through with the deal they struck to finance the purchase of Clear Channel. Of course, the credit mess has put the banks in a bind. The latest twist is that two hedge funds seem to be interjecting themselves into the fray. The New York Post reports that Pentwater Capital Management filed suit for "tortuously interfering" with the deal. Highfields Capital is expected to follow suit.

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

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