17/02/2011 - 11:10

Radhika Oswal says Burrup didn't default

17/02/2011 - 11:10

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Radhika Oswal will argue in the Supreme Court of Victoria that ANZ invalidly appointed PPB Advisory as receivers and managers over Burrup Fertilisers, because she believes Burrup was never in default of its debt repayments to the bank.

Radhika Oswal will argue in the Supreme Court of Victoria that ANZ invalidly appointed PPB Advisory as receivers and managers over Burrup Fertilisers, because she believes Burrup was never in default of its debt repayments to the bank.

A lawyer representing Mrs Oswal filed proceedings today seeking orders from the court that the appointment was invalid.

Mrs Oswal also said that prior to and up to the appointment of the receiver, all amounts owed to ANZ were fully paid by their due date.

In December, ANZ stated that it appointed PPB over default events relating to debt facilities established between 2002 and 2007, evidence of financial irregularities, and court disputes between Burrup and major shareholder, Norwegian fertiliser giant Yara International.

"Mrs Oswal has been in contact with representatives of the receiver in relation to aspects of the receivership," a statement released on behalf of Mrs Oswal said.

"She has concerns about the conduct of the receivership and the direction it is taking.

"As the holder of 35 per cent of the shares in Burrup Holdings, almost all of which is not subject to any security, she has formed the view that the receivership is not in her interests.

"In light of the fact that the board of Burrup Holdings has taken no action in relation to this matter, Mrs Oswal has therefore resolved to take this action in her capacity as a shareholder of the company."

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