VIENNA, July 8 (Reuters) - Junior debt holders in failed Austrian lender Hypo Alpe Adria HAABI.UL may see some of their claims redeemed after all, Austrian newspaper Der Standard reported on Wednesday.
Der Standard said in an article due to be published on Thursday that Austria's constitutional court was set to overturn part of a law passed last year that wiped out the claims of subordinated debt holders.
The law also mandated an 800 million euro ($884 million) contribution from former owner BayernLB BAYLB.UL . Der Standard said this part of the law might be upheld by the court.
The constitutional court declined to comment.
Hypo Alpe Adria was nationalised by Austria in 2009 after it became apparent that a headlong expansion into Balkan and other frontier markets had been over-ambitious. It had been bought by Bavarian state bank BayernLB two years earlier.
Nearly 900 million euros' worth of junior debt issued by Hypo and guaranteed by Carinthia was wiped out by a special law that Austria passed last year, enraging investors who thought they had iron-clad state guarantees.
The junior debt holders include Austrian insurers Uniqa UNIQ.VI and Vienna Insurance VIGR.VI as well as the World Bank and German funds.
Hypo Alpe Adria's assets were transferred into "bad bank" Heta last year to be wound down.
Austria on Tuesday offered to pay Bavaria at least 1.23 billion euros in a comprehensive out-of-court settlement. The total amount of claims and counter-claims relating to the bank's failures amounts to about 16 billion euros. ID:nL8N0ZN0Y9
($1 = 0.9048 euros)