TPG, Apax sued by Hellas Telecommunications liquidators

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court 5_sqPrivate equity firms TPG Capital Management and Apax Partners have been sued by the liquidators of its portfolio company Hellas Telecommunications.

The liquidators of the Greek cellular service provider said the two firms made highly leveraged acquisitions of two Greek business and then siphoned €1bn out of the companies, according to Dow Jones.

The lawsuit was filed in the US Bankruptcy Court in Manhattan.

Back in 2012 Apax Partners managing director Giancarlo Aliberti was accused of defrauding investors who bought €1.5bn ($1.3bn) of shares in Hellas Telecommunications.

Documents filed in the US by Cortlandt Street Recovery Corp allege Aliberti colluded with others to “bleed” money out of the Greek telecoms operator into funds managed by Apax and TPG Capital, which bought the company for €1.6bn in June 2005, according to a Bloomberg report.

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