Sale of Iceland Foods Might Wipe Out Icesave Debt -
The resolution committee of the defunct Landsbanki is trying to obtain GBP 1.8-2.0 billion (ISK 333-370 billion, USD 3.0-3.3 billion, EUR 2.1-2.3 billion) for the supermarket chain Iceland Foods in the UK, as stated on the website of The Financial Times. However, the committee would only confirm to Fréttabladid that the options regarding the sale of Iceland Foods are being explored. The asset has thereby entered a sales process and in the coming weeks various financial institutions will be approached to obtain advice on the process. According to Fréttabladid’s sources, these include some of the largest financial institutions in the world.
If GBP 2 billion is obtained for Iceland Foods, as speculated by The Financial Times, Landsbanki’s debt to the Icesave depositors in the UK and the Netherlands as stated in the agreements on which the Icelandic nation will vote in tomorrow’s referendum could be paid up in its entirety and the Icelandic state wouldn’t have to contribute a penny.
Landsbanki holds an almost 67 percent share in Iceland Foods, so its bankruptcy estate could receive ISK 220-250 billion (USD 2.0 billion, EUR 1.4 billion) from the sale. The share of the Icelandic Depositors’ and Investors’ Guarantee Fund of this amount would be ISK 112-126 billion. That is ISK 52-66 billion more than what was originally assumed the fund would receive of the ISK 117 billion the resolution committee expected to obtain from the Landsbanki bankruptcy estate’s entire portfolio of assets, including its share in Iceland Foods.