Will LBO debt topple Clear Channel?

The $24 billion LBO of Clear Channel Communications Inc. was one of the last megabuyouts to get done, with the deal's private equity sponsors -- Thomas H. Lee Partners and Bain Capital -- actually having to sue the banks, which had tried to back out of their commitments to finance the deal after the credit crunch began. Clear Channel's roughly $18 billion in long-term debt, coupled with the recession's downturn in advertising spending, has certainly hurt the company's bottom line. Clear Channel reported a $418 million first-quarter loss recently.