Several big banks are reportedly not feeling the love for Clear Channel Communications after being forced to uphold lending commitments in the buyout of the radio and billboard giant last year.
Clear Channel's private equity owners have gone hat in hand to some big banks to help them keep Clear channel from defaulting on its loans, The New York post reported.
However, the banks are have rejected the requests for help, which could mean Clear Channel could default by year-end or early next year, a source close to the situation told The Post.
In July 2008, Bain Capital and Thomas H. Lee Partners inked a deal to buy Clear Channel in a highly leveraged $17.9 billion buyout. The deal followed a long and often acrimonious dispute with the six banks that agreed to finance the transaction, during which Bain and THL took the banks to court after the lenders refused to finance the deal at the higher, $19.5 billion price.