An effort by creditors to force defunct investment vehicle TPG Troy into bankruptcy has fallen flat after a judge dismissed the case, citing ongoing litigation over the creditors' claims, Reuters reported yesterday. Tossing out the chapter 7 proceeding on May 9, Bankruptcy Judge Martin Glenn said that there was a "bona fide dispute" over whether TPG Troy, a vehicle of private equity giant TPG Capital, owes the creditors money. The unconventional liquidation was filed on TPG Troy's behalf by a group of hedge fund creditors led by SPQR Capital, which claimed to be owed 111 million euros ($143 million) stemming from TPG Troy's investments in TIM Hellas, a Greek telecommunications company. In February, TPG Troy sought to have the case dismissed, arguing that it could not be in bankruptcy because it had wound down its operations in 2007. It pointed to more than 10 lawsuits filed against it by the creditors over the same alleged debts, saying that the bankruptcy was the latest in a line of creditor attempts at "forum shopping."
