A hi-def Clear Channel billboard

The banks financing the Clear Channel buyout have finally placed the cash for the deal in an escrow account, where it will remain until the deal is complete, following an agreement by the company to accept a reduced bid, MediaBuyerPlanner reports.

The new price of $36 per share must be approved by Clear Channel shareholders at a special meeting that has not yet been scheduled.

The private equity firms originally offered $37.60 per share, but Clear Channel shareholders said the deal was too low. Later, the firms raised the offer to $39.20.

When the credit crunch unfolded, however, the banks financing the deal refused to play ball. The new agreement stems off what could have become a protracted legal battle.

One major institutional shareholder, Highfields Capital Management, is said to have already agreed to the new price.