The latest salvo has been fired in the Clear Channel Communications (CCU: sentiment, chart, options) buyout, with a district court judge in Texas ordering investment banks to fund the $19 billion buyout of CCU by 2 private-equity firms. Judge John Gabriel has granted a temporary restraining order against the 6 banks, according to CCU. The media giant, based in San Antonio, sued to hold the banks to the original agreement, in light of the deteriorating credit markets. The lending banks have demanded that the private firms refinance the agreement.

When the deal was on shaky ground yesterday, CCU dropped 17%, but it has rallied back 10% today thanks to this news. In a statement made yesterday, the private-equity firms - Bain Capital and Thomas H. Lee Partners- noted, "it seems clear that lender's remorse set in when credit markets worsened ... now they are trying to walk away from their commitment letter, which clearly states that they bear all the risk that conditions in the debt markets might change." The banks, including Citigroup, Morgan Stanley, and Wachovia, promised to fight all lawsuits related to the deal.