Bank Julius Bär might achieve an extraordinary gain of 100 million francs from the Signa bankruptcy—in other words, it may reduce its loan loss from 600 to 500 million. This was reported by the «Handelszeitung.»

The reason for this is that a portion of the controversial loans extended by Julius Bär to René Benko appears to be more valuable than feared.

Two Loan Tranches Are Lost

Bank Julius Bär had granted the Signa empire of Benko three loans of 200 million each. Nothing can be recovered from two of the loans, as they were secured by guarantees from the Signa empire.

The third tranche was granted by Julius Bär to Benko for the purchase of the Globus Group and secured by shares of Globus AG, which, according to the «Handelszeitung,» can be realized.

Julius Bär is expected to receive 100 million Swiss francs; the other half of the share package will reportedly be taken over by the Thai Central Group.

The bank declined to comment on the report.