The banks that agreed to finance the deal include Citigroup Inc. (NYSE: C), Morgan Stanley (NYSE: MS), Deutsche Bank AG (NYSE: DB | news | PowerRating | PR Charts ) and Credit Suisse Group (NYSE: CS).

If the Clear Channel deal falls apart, it would be the latest in a series of leveraged buyouts that have failed since the credit crisis began last year.

Clear Channel struck a deal last year to be bought by the private equity firms for $39.20 a share.

Banks are increasingly reluctant to take on credit risk because their balance sheets are strained by subprime mortgages, collateralized debt obligations and other forms of debt that are performing much worse than expected.

Clear Channel shares plunged 21 percent to $25.70 after-hours on Tuesday after falling 5.6 percent in the regular session.

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