Besieged Burrup Fertilisers chairman Pankaj Oswal has emerged after the appointment of receivers to the company, saying he welcomes the proposed sale of the business and that he has been trying to sell his shares in parent company Burrup Holdings all year
Besieged Burrup Fertilisers chairman Pankaj Oswal has emerged after the appointment of receivers to the company, saying he welcomes the proposed sale of the business and that he has been trying to sell his shares in parent company Burrup Holdings all year.
Mr Oswal, who released a statement from India today, said joint venture partner Yara International had been blocking his attempts to sell shares, calling it a "significant hurdle".
Mr Oswal also took the opportunity to point out that Burrup Fertilisers remains "extremely profitable ", but did acknowledge the company owes $360 million to ANZ Banking Group.
He contradicted media reports saying he owned a 65 per cent share in the parent company.
"I own only 30% of the shares in Burrup Holdings Limited," Mr Oswal said.
"My wife owns further shares in the company - almost all of which are not subject to any security and which cannot be sold by a receiver."
However the ANZ has disputed Mr Oswal's claim, releasing a statement saying it did have rights to the shares.
"ANZ has certain rights to all of the Oswal's 65 per cent shareholding," the bank said.
Based on those rights we expect to make a full recovery."
"At this stage receivers have taken control of Burrup Fertilisers Pty Ltd and will be in a position to sell that company or its assets in its entirety and repay the $360 million owed to ANZ under the facility agreements with that bank," Mr Oswal said.
"The surplus - which should be a substantial amount - will then be paid to Burrup Holdings Limited, at which time a decision will be made about the future of Burrup Holdings Limited."
Mr Oswal also took the opportunity to deny media speculation he had "fled" overseas to escape his collapsing empire.
"Rumours that I have "fled" Australia are fanciful and mischievous," he said.
"I am in India visiting my daughter and am looking at other business opportunities in other parts of the world.
"I expect to return to Perth in early January 2011."
Mr Oswal's full statement is included below:
Media comment from Pankaj Oswal
21 December 2010
In recent days there have been a number of reports in the media relating to the appointment of receivers to Burrup Fertilisers Pty Ltd and to the events leading up to that appointment. A number of inaccurate statements and unsubstantiated allegations have appeared in those media reports.
Statements to the effect that the receivers will be seeking to sell a 65% stake in Burrup Holdings Limited belonging to me are incorrect. I own only 30% of the shares in Burrup Holdings Limited. My wife owns further shares in the company - almost all of which are not subject to any security and which cannot be sold by a receiver.
At this stage receivers have taken control of Burrup Fertilisers Pty Ltd and will be in a position to sell that company or its assets in its entirety and repay the $360 million owed to ANZ under the facility agreements with that bank. The surplus - which should be a substantial amount - will then be paid to Burrup Holdings Limited, at which time a decision will be made about the future of Burrup Holdings Limited.
Due to the terms of shareholders agreements the third investor in Burrup Holdings Limited, Yara Australia Pty Ltd, has been in a position to block the sale of shares in Burrup Holdings Limited. This has been a significant hurdle in my family's attempts to sell its shares in the company over the last year. However, with the appointment of a receiver, Yara has no ability to prevent the sale of Burrup Fertilisers Pty Ltd. This is a development that I welcome.
As Chairman and managing Director, I have seen Burrup Fertilisers weather through the global financial crisis and a six-month shutdown of this gas supply after the Varanus Island explosion through which we continued to pay all our bills. The plant has since operated for over 400 days of continuous production with an impeccable safety record. It is one of the rare examples of downstream processing in Australia providing jobs and opportunities for Australians and is extremely profitable. All shareholders have benefitted from Oswal Groups support and management.
There have also been allegations in the media about payments made by Burrup Fertilisers Pty Ltd. Contrary to the reports all payments have been made with the knowledge of the board. Tug boats referred to in earlier media reports were purchased for, and on behalf of, Burrup Fertilisers Pty Ltd.
I am disappointed that much misinformation is being peddled by those seeking to benefit from this situation. It should be noted that under our management Burrup has been built and established as a world class producer of ammonia. It is extremely profitable and companies in Australia and overseas have expressed considerable interest in purchasing the asset.
Rumours that I have "fled" Australia are fanciful and mischievous. I am in India visiting my daughter and am looking at other business opportunities in other parts of the world. I expect to return to Perth in early January 2011.
Released by Oswal Group Global.
