PE Firms Hit With $104M Suit Over Greek Tragedy

Law360, New York (November 16, 2011, 4:26 PM EST) -- Noteholders of Greek company Hellas Telecommunications Sarl on Tuesday sued private equity firms TPG Capital LP and Apax Partners LLP to recover more than €77 million ($104 million) they pocketed while allegedly driving the telecom into insolvency.

TPG and Apax acquired the profitable cellphone company formerly called Tim Hellas Communications SA in 2005 and pursued a breakneck expansion, borrowing vast sums, including €1.5 billion ($2.2 billion), from noteholders, which the buyout firms used to reward themselves despite burying the company in debt, according to the complaint...
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