Robert Kronenberg_

Regardless of Outcome, Clear Channel Shareholders Will Win

CORRECTION:

CC Media Holdings is not a “successor” of one of the commitment letter parties. It is a successor to a company called BT Triple Crown Capital Holdings III, which is a party to the Merger Agreement with Clear Channel, but never was a party to the commitment letter. The banks argued that CC Media Holdings was an “affiliate” (not a successor entity) of a party to the commitment letter (BT Triple Crown Merger Co.), but the Texas court found that it was not legally an affiliate.

PARAGRAPH TO WHICH CORRECTION APPLIES:
“The banks may have a valid argument that CC Holdings, as the successor of one of the commitment letter parties, should be forced to litigate in New York, but Clear Channel is not a party to the commitment letter or financing agreements, and the Texas case will continue at least as to Clear Channel.”