Legal News

Clear Channel: Texas Judge Says Banks Can?t Interfere with Agreement

By Jamie Heller

They work fast in Texas!

Clear Channel scored a temporary restraining order overnight with the judge saying the banks must not “interfere with or thwart consummation of the Merger Agreement.” (A WSJ.com report, and in turn a first version of this post as well as its headline, earlier said in error the judge compelled the banks to issue financing.) The ruling far from resolves the situation. Still, shares of Clear Channel soared at the open.

According to CC press releases that started hitting the wires around 3 in the morning, Judge John D. Gabriel ordered that the banks:

among other things, must not “interfere with or thwart consummation of the Merger
Agreement” by 1) refusing to fund the Merger transaction, 2) insisting
on terms that are inconsistent with the Commitment Letter, or 3)
refusing to act in good faith in the drafting of definitive loan
documents.

Lots of Texas law firms listed on the petition, including Beck, Redden & Secrest: Davis, Cedillo & Mendoza and Gibbs & Bruns.

More soon. And yes, we’ll try to get the order!

Full post as published by Law Blog - WSJ.com on March 27, 2008 (boomark / email).