Oswal offers $20m to Burrup

Pankaj Oswal has been accused of producing misleading information after he said he offered to deposit $20 million into Burrup Fertilisers to "avoid expensive and damaging litigation" stemming from the investigation of Burrup's financial irregularities.

In a statement released today, Mr Oswal said comments from the receiver about unspecified financial irregularities were both cynical and frustrating and he was yet to receive any details.

Mr Oswal said he had made a "goodwill offer" to deposit $20 million into Burrup in writing to the firm's 35 per cent shareholder, Yara International, which had not responded.

"I have yet to receive any substantive details of these so called "financial irregularities"," Mr Oswal said

"I find this frustrating as I am not able to make a comprehensive response.

"In the past, I have endeavoured to rectify this through a goodwill offer to deposit $20 million into Burrup whilst these unspecified transactions were looked at.

"I did this to avoid expensive and damaging litigation which I thought was in the best interests of the company.

"This was an offer in writing to Yara to which, they have yet to respond.

"Yara's lack of communication on this issue leads me to think that its agenda has been to pressure me into selling our shares to them."

In response to Mr Oswal's statement, Yara said Mr Oswal only made the offer to Burrup Holdings, not Yara, and that Mr Oswal had "continued to produce misleading information."

"As a Burrup shareholder, Yara has every right to be concened about financial irregularities which the receivers have confirmed to exist, and we are not going to respond in detail to this latest smokescreen," Yara's statement said.

"It is important to point out, however, that PPB Advisory is not in a position to sell Yara's share in Burrup Holdings and the so-called "good will offer" was never made to Yara but to Burrup.

"Mr Oswal would be better served by returning to Australia and answering the growing number of serious questions that now exist regarding his activities in the lead-up to and follwing the appointment of receivers to Burrup."

Burrup Fertilisers was placed into the hands of receivers from PPB Advisory by company financiers ANZ on December 17, after it was unable to settle a dispute between Mr Oswal and Yara.

ANZ is understood to have a direct $360 million exposure to Burrup, but could be owed as much as $800 million.

Yara's dispute centred on concerns over a $22 million unauthorised related party payment using Burrup Holdings funds, and separate payments to shipping company Maruti Shipping.

Conversely, Mr Oswal accused Yara of taking court action in a "cynical attempt to muddy the waters" in relation to a commercial dispute over the pricing of ammonia delivered to Yara under its offtake agreements with Burrup.

Mr Oswal owns a 30 per cent stake in Burrup and his wife, Radhika Oswal, holds a 35 per cent stake, with Yara holding the remaining 35 per cent.

Speculation has mounted that in order to raise cash, the Oswals' private jet, 17 luxury vehicles, and $70 million mansion in Peppermint Grove are either all on the market or in the hands of receivers.

The Oswals were notably absent from a creditors meeting organised by PPB Advisory early this week.

Mr Oswal's full statement is below:

I continue to be concerned over the emotive and often misleading statements regarding the Burrup Receivership. Many of these almost daily statements appear more designed towards self promotion, the effect of which seems the destruction of company and shareholder value. This of course affects my family being the largest shareholder with 65%. I reiterate that virtually all of my wife's shares are unencumbered.

Comments from the Receiver about unspecified financial irregularities are both cynical and frustrating. I have yet to receive any substantive details of these so called "financial irregularities". I find this frustrating as I am not able to make a comprehensive response. In the past, I have endeavoured to rectify this through a goodwill offer to deposit $20 million into Burrup whilst these unspecified transactions were looked at. I did this to avoid expensive and damaging litigation which I thought was in the best interests of the company. This was an offer in writing to Yara to which, they have yet to respond. Yara's lack of communication on this issue leads me to think that its agenda has been to pressure me into selling our shares to them.

However for the first time 100% of Burrup can be sold (including Yara's shares) by PPB Advisory. This will significantly increase value for the company and potential buyers.

Also not widely reported is the fact that my family has underwritten the financing of the Burrup operation and funded all cost overruns during construction without any contribution from Yara notwithstanding its 35% ownership.

I welcome the appointment of a Receiver to the extent that it should enable a transparent and ethical sale of Burrup in the best interests of shareholders and creditors. I shall assist wherever appropriate.