Yara legal action unnecessary: Burrup

Burrup Holdings has claimed that a legal battle with its 35 per cent shareholder Yara Australia is "a cynical attempt to muddy the waters" in relation to a commercial dispute over the pricing of its ammonia exports.

Burrup has also described as false and misleading claims by Yara that Burrup has denied the majority shareholder access to the company's books and records.

Yara has sought to file a court writ to gain access to Burrup's books.

In a statement, Burrup said that it had already agreed to the request in writing.

"Today's court proceedings appear to serve no other purpose than to waste the company and shareholders time and money, to circumvent the shareholders agreement and harass and intimidate Burrup, its executives and Mr Oswal," the statement said.

"This claim by Yara that consent for inspection of our books was highly conditional is misleading as the only condition required is for Yara's auditor to sign a confidentiality agreement," said Burrup chairman Pankaj Oswal.

"This is standard practice and in accordance with the requirements of the shareholders agreement."

"The continued legal wrangle by Yara is nothing more than a cynical attempt to muddy the waters on the dispute over the benchmark reference price for ammonia. Burrup believes that the current reference price; upon which Yara's performance is measured, is not in the best interest of Burrup Shareholders."

Yesterday, Yara said it wanted to undertake the audit because of concerns about the failure of Burrup to prepare and file financial reports, and the high cost levels within Burrup which remain unexplained.

Yarra also noted the persistent lack of transparency and appropriate adherence to corporate governance principles by Mr Oswal.

Yara also cited "serious allegations raised by the media of the misuse of Burrup funds and the failure of the company to provide an adequate explanation".

Last month, Fairfax newpapers alleged funds from company were used to pay the bills of a shipping company related to its founder Mr Oswal.

There were also allegations an invoice for Mr Oswal's Maruti Shipping was reinvoiced to the jointly owned Burrup Fertilisers.

Burup is reportedly seeking to convert its status from a public company to a proprietary company, which normally reduces reporting obligations.