Bondholders in Spain's failed Banco Popular bid to reverse rescue

MADRID, Aug 17 (Reuters) - A group of bondholders who owned debt in Spain's failed Banco Popular filed a lawsuit on Thursday asking for the lender's rescue and sale to be cancelled, joining a growing series of legal challenges against the European Union's intervention.

European authorities orchestrated an overnight rescue of Popular (NasdaqGS: BPOP - news) in early June, with shareholders and some bondholders taking losses while the bank was sold for a nominal one euro to larger rival Santander.

The operation was hailed by the Spanish government and EU bodies as a successful first test of a tougher European regime to deal with troubled lenders, after Popular was hit by a bank run.

But investors hurt by the intervention have argued that Popular was not necessarily on the verge of collapse.

Three of the largest Popular bondholders - Algebris, Anchorage Capital Group and Ronit Capital - filed a lawsuit with the General Court of the Court of Justice of the European Union on Thursday asking for the rescue to be reversed and their bonds restored.

They also asked for more information about the EU's Single Resolution Board (SRB)'s decision to step in and claim the SRB made Popular's situation worse by commenting about the bank prior to its rescue, according to summaries of their pleas.

Several Spanish consumer groups representing small shareholders have also lodged claims against the SRB's intervention with Europe's top court, as has a group of Mexican investors in the bank, headed by billionaire Antonio del Valle, who had a 4 percent stake in Popular.

The bank was worth around 1.3 billion euros on the stock market the day it was bailed out. Some 1.9 billion euros worth of subordinated and convertible bonds were also wiped out as part of the intervention. (Reporting by Sarah White and Carlos Ruano; Editing by Adrian Croft)