Radio Online picks up on the news story from the NY Post that the tortured $27 Billion go private buyout of Clear Channel two years ago may be ready to begin its next chapter.
Here is the story in the New York Post.
Back when this deal was trying to come together, it became apparent that taking Clear Channel private was not going to work out so well, and the banks the two Private Equity firms were relying on to provide the funding got cold feet (this was just about the time that Bear Stearns was in trouble). The PE firms took the banks to court to keep them from backing out of financing the deal.
A few months ago, it was reported that several parties were actively pushing to force Clear Channel into bankruptcy sooner rather than later. Clear Channel probably will fail to meet the terms of its loans late this year or early next year, at which point the banks can say “no” to any further extension of time or relaxing the terms of the loans.
The speculation in the NY Post story is that the two private equity firms may ultimately find it in their interest to let Clear Channel fail, and at least own a portion of the company after it exits bankrupcty.
The NY Times reports that the PE firms and Clear Channel say the NY Post story is not factual – that no effort is being made to restructure.