Thomas H. Lee and Bain Capital agreed to buy broadcast company Clear Channel (CCU) for $39.20 a share. As usual, several banks are putting up most of the money, an obligation of $18 billion in this case.
With LBO debt being written down right and left, it would be understandable if the banks had lost some of their lust for the transaction. According to The Wall Street Journal, the banks say the deal is in trouble because the two private equity firms have cold feet. The firms blame the banks.
Broadcast advertising revenue is falling apart, so it could be that all of the financial players involved would like out of the deal.
Then, it can end up in court.
Douglas A. McIntyre