FERTILIZER BARON PANKAJ OSWAL TO SUE RECEIVERS OF BURRUP

Controversial fertiliser tycoon Pankaj Oswal says PPB Advisory, the receiver and manager appointed by ANZ Bank to Burrup Fertilisers, is ”irresponsibly” using company funds.

Mr Oswal is suing Burrup Fertilisers for $US491 million ($A475 million) in cost overruns and is challenging the validity of the receivership.

Mr Oswal says PPB Advisory charging $7 million in fees and disbursements in less than six months is ”scandalous”, as is the $4.6 million in legal fees.

”It should be noted that virtually all my legal actions are against PPB Advisory, not Burrup Fertilisers,” he said.

”It is also interesting that even after all of this expenditure, Burrup still has $US41 million in cash.

”Not bad for a company put into receivership.”

Mr Oswal said it was ”one of many reasons” why he and his wife Radhika were challenging the receivership.

PPB Advisory was appointed receivers in December 2010.

Mr Oswal said the plant since then has lost 60 days of operations due to fire, equipment failure and mismanagement.

He said insurance premiums had skyrocketed, staff morale was low and lost operations had cost the company $80 million in revenue.

”It is worth noting that by comparison, when I ran the operation the plant ran for 420 consecutive days at 115 per cent of the name plate capacity,” Mr Oswal said.

He also said he believed there was collusion between ANZ, fertiliser company Yara and PPB Advisory to force him to sell at the lowest possible price.

Mr Oswal is also taking action against the Commonwealth Bank for selling his Gulfstream jet at a discounted price to an organisation in the United States.

”I am informed that ANZ and the Commonwealth Bank have also colluded to put me under further pressure,” he said.

Mr Oswal will take the matters to the Supreme Court in Melbourne in the next several months.

A spokesman for PPB Advisory said they were not interested in a public slanging match with Mr Oswal.

He said the sale process was continuing and the fees were ”firmly in line” with industry standards.

AAP

Sourced & published by Henry Sapiecha