Landsbanki could delay the sale of Iceland Foods for another year before it has to sell its stake in the chain, it has emerged.

A court case has been brought against the Icelandic state by the EFTA Surveillance Authority (ESA), for allegedly failing to compensate savers who lost out when Landsbanki collapsed. It kicks off next month.

If the EFTA Court rules in favour of the ESA, Iceland will face a demand for immediate payments and Landsbanki will be forced to speed up the disposal of its assets.

That could see the auction for Iceland Foods shares come to an abrupt end - and possibly lead to a bargain price for one of the potential buyers.

But observers have predicted the court case could hand Landsbanki another year to hold out for the bumper £1.5bn it wants for its shares.

While the ESA said it couldn’t estimate how long the case might take, it said similar cases had taken up to 12 months to resolve.

Landsbanki would have plenty of time to hold out before a sale becomes absolutely necessary - and offers an insight into why sources insist the bankrupt bank is “completely relaxed” with the leisurely progression of the sale (The Grocer, 10 December).

The ESA claims Iceland should have paid up by 23 October 2009. “This is probably the highest-profile case the court has ever had,” a spokesman for the ESA told The Grocer. “We have stated clearly what our position is. Now it is up to the court to decide.”

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