As a trial was about to get under way, a peace has been reached in a battle over one of the biggest buyouts to be endangered by the credit crunch.

The private equity firms heading a buyout of the radio-station chain Clear Channel Communications and the six banks that have agreed to finance the deal have reached a settlement, CNBC reports. The buyout's price has been reduced to $36 per share, from $39.20.

News of settlement talks emerged on Monday, and Justice Helen Freedman of the New York State Supreme Court adjourned the lawsuit brought against the banks by the private equity firms Thomas H. Lee Partners and Bain Capital will until at 2 p.m.

The six banks that agreed to finance the buyout—Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, Royal Bank of Scotland, and Wachovia—had stood to lose billions of dollars if the deal closes as scheduled on June 12 with the original commitment terms.

A number of big buyouts, including deals for Sallie Mae and United Rentals, have fallen apart because of uncertainty over the financing.

The banks in the Clear Channel deal also faced a separate lawsuit filed by Clear Channel itself in Texas. A trial over the lawsuit, in which Clear Channel seeks more than $26 billion in damages, was scheduled to start on June 2.