A German court has ordered Heta, a bad bank established to deal with Austrian lender Hypo Alpe Adria, to pay German lender BayernLB about EUR2.3bn.
The judge asked Heta to make payments of EUR1.03bn and CHF1.29bn plus interest to BayernLB, which has been trying to recoup EUR2.4bn from Hypo, which it had previously owned.
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Heta has decided to appeal against the decision as it feels that key parts of its arguments had been inadequately appreciated.
Heta chairman Sebastian Prinz von Schoenaich-Carolath in a statement said: "Heta does not see any reason to change its legal position. It is now up to the higher regional court in Munich to thoroughly consider all the arguments made according to Austrian law."
Since late 2012, BayernLB and the Carinthia-based bank Hypo have become embroiled in a dispute over 2.4bn which the German lender provided to Hypo.
BayernLB bought a majority stake in Hypo in 2007, before ceding control of the Austrian bank when it had to be nationalised during the financial crisis after a rapid expansion into the Balkans ended in failure.
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