(Adds statement from EU General court in paragraphs 7 and 8, no comment from Mexican shareholder Del Valle in 5)

MADRID, Nov 22 (Reuters) - Banco Popular's shareholders and creditors suffered a setback on Wednesday after Europe's second highest court said they were not entitled to compensation as a result of the bank's rescue 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 as they would not have received better treatment in the event of the liquidation of Banco Popular than that resulting from the resolution.

Shareholders, such as Mexican investor Antonio del Valle, challenged this decision before the General Court.

Del Valle was not immediately available for comment through Mexican lender BX+, where he is honorary member of the board.

Among the bondholders that filed the lawsuit were Algebris and Anchorage Capital Group. Law firm Quinn Emanuel, which represented them, was not immediately available for comment.

On Wednesday, the European General Court dismissed the challenge, in particular questioning of the valuer's independence.

"The valuer relied on a correct methodology and did not commit manifest errors in the valuation of Banco Popular's assets," the court said, adding that the result at the end of normal insolvency proceedings would therefore have been the same as that which resulted from the resolution.

The latest ruling can be appealed before the European Court of Justice within two months and 10 days of notification of the decision.

Popular had a stock market value of around 1.3 billion euros on the day it was bailed out. Some 1.9 billion euros worth of subordinated and convertible bonds were also wiped out.

Spanish and EU authorities hailed the case as a successful first test of so-called bail-in rules, where investors and creditors bear much of the cost of a bank rescue.

More than 40 significant shareholders, including Del Valle, and junior bondholders affected by Popular's rescue had sought the annulment of Popular's resolution, but Europe's second-highest court dismissed their claims in June of 2022.

(Reporting by Jesús Aguado; additional reporting by Emma Pinedo; editing by Foo Yun Chee, Inti Landauro and Bernadette Baum)