Clear Channel and Providence Equity agreed to slash $100 million from their $1.2 billion deal for the 56 Clear Channel stations, the Wall Street Journal reports. But Wachovia, one of three banks set to finance the deal, has sued Providence to wriggle out of its commitment, reports the New York Times.
Wachovia decided it was "in the best interest of our shareholders to ask a court to confirm that the prior commitment is no longer in effect," states the Times.
Wachovia is committed to a $450 million loan in the deal. Further complicating matters, Wachovia is one of the banks set to finance Clear Channel Communications’ takeover by a pair of private equity firms.