Exactech Owner TPG, Lenders Spar Over Hip Replacement Venture

Exactech Inc.’s owner, TPG Capital, and lenders funding the orthopedic implants maker’s bankruptcy are sparring over a joint venture that makes medical devices used in hip replacements.

The dispute described by lawyers Wednesday in Delaware bankruptcy court involves JointMedica Ltd., a joint venture owned by TPG through a holding company. Exactech also has a 9% stake in the venture.

Lenders giving Exactech an $85 million Chapter 11 loan claim its stake in JointMedica should be pledged to them. The lenders’ names weren’t disclosed at Wednesday’s hearing and couldn’t immediately be learned.

TPG claims an anti-transfer provision in ...