LONDON-- Goldman Sachs Group Inc. and several of its clients stand to lose hundred of millions of dollars from a loan made to Banco Espírito Santo SA just weeks before the Portuguese lender collapsed in August, after the Bank of Portugal said the claim won’t be honored by Novo Banco, the “good bank” carved out of BES.

Novo Banco said it was told by the Bank of Portugal last week that it wouldn’t have to repay $835 million owed to financing vehicle Oak Finance Luxembourg SA, in a reversal of an earlier decision by the central bank. The loan will instead remain an obligation of the “bad bank” that kept the Banco Espírito Santo name and its worst assets.