MADRID (Reuters) – The European General Court of Justice on Wednesday said that Banco Popular’s shareholders and creditors of were not entitled to compensation in the winding down and rescue of the former Spanish lender more than six years ago.
In June of 2017, the European Single Resolution Board (SRB) orchestrated an overnight rescue of Popular, with shareholders and some bondholders taking losses as it was sold for a nominal one euro to larger Spanish rival Santander.
Three years later, the SRB said that shareholders and creditors had no rights to compensation.
They challenged this decision before the General Court.
(Reporting by Jesús Aguado; editing by Inti Landauro)
