New York judge dismisses counterclaims against Clear Channel

A New York judge dismissed charges on Friday against Clear Channel Communications made by six banks in a case involving the sale of the radio station owner to a private equity group.

Thomas H. Lee Partners and Bain Capital Partners had sued banks, including Citigroup Inc, and Credit Suisse Group in New York and Texas courts, asking New York State Supreme Court Judge Helen Freedman to force the banks to fund the purchase.

The banks had filed a suit against Clear Channel and the private equity groups. Now only the private equity groups will be parties in the New York suit. The trial begins May 5.

Shares of Clear Channel Communications fell 47 cents, or 1.56 percent to close at $29.70 after the ruling.

Earlier in April, the lenders asked the private equity groups to settle the case through an arbitrator. That proposal was rejected.