Hellas suit defendants ask court to dismiss U.S. case, nix recognition

By Caroline Salls

Pittsburgh, May 30 - Numerous Hellas Telecommunications (Luxembourg) II SCA adversary proceeding defendants asked the U.S. Bankruptcy Court for the Southern District of New York to terminate recognition of the company's compulsory liquidation proceeding and dismiss its Chapter 15 bankruptcy case, according to a May 29 court filing.

The defendants include TPG Capital Management, LP, David Bonderman, James Coulter, TPG Capital, LLP, TPG Advisors IV, Inc., TPG Genpar IV, LP, TPG Partners IV, LP, T3 Advisors II, Inc., T3 GenPar II, LP, T3 Partners II, LP and T3 Parallel II, LP, Apax Partners LLP, Martin Halusa, Apax Partners, LP, Apax WW Nominees Ltd., Apax Partners Europe Managers Ltd., Apax Europe VI GP Co. Ltd., Apax Europe VI GP, LP, Apax Europe VI-A, LP, Apax Europe VI-1, LP, TCW/Crescent Mezzanine Partners III Netherlands, LP, TCW/Crescent Mezzanine Partners III, LP, TCW/Crescent Mezzanine Trust III, TCW/Crescent Mezzanine III, LLC, TCW Asset Management Co. and TCW Group Inc. and Nikesh Arora.

As previously reported, Hellas' joint compulsory liquidators and foreign representatives filed a lawsuit against the TPG and Apax entities and their affiliates, alleging redemption fraud.

The defendants said the order recognizing the company's compulsory liquidation as a foreign main proceeding should not have been entered under controlling Second Circuit precedent, so all activity in the Chapter 15 case should be void.

With no place of business or property in the United States, the defendants said Hellas II cannot be a debtor in a Chapter 15 case and cannot sustain the recognition status originally granted by the court.

According to the motion, Hellas' representatives claim there is property in the United States consisting of claims for fraudulent conveyance and unjust enrichment asserted in the complaint filed against more than two dozen foreign and domestic defendants and an alleged transferee class.

"This argument fails," the motion said. "To the extent that the claims asserted in the complaint belong to the liquidators, or alternatively to Hellas II, they are located in the United Kingdom where Hellas II and the liquidators are domiciled."

Hellas Telecommunications (Luxembourg) II is incorporated in Luxembourg and has offices in London. It is the parent company of Wind Hellas Telecommunications SA, a telecommunications company based in Maroussi, Greece. The company filed bankruptcy on Feb. 16, 2012 under Chapter 15 case number 12-10631.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.