The banks who were supposed to finance the buyout of radio behemoth Clear Channel are, as reported yesterday, getting cold feet about backing the deal in the face of the credit crisis. According to the New York Times, Clear Channel and the private-equity firm looking to buy it out are planning to go to court in an effort to force the banks, which include Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, the Royal Bank of Scotland and Wachovia, to finance the deal at the cheaper rate that was available when the deal was first announced back in late 2006, the days when credit flowed like water. [NYT]
