Burrup receiver ‘concentrated on running ammonia plant’

One of the receivers of Burrup Fertilisers says he concentrated on running the ammonia plant.

Pankaj Oswal leaves court in Melbourne.

One of the receivers of Pankaj and Radhika Oswal’s Burrup Fertilisers has admitted he did not consider the flamboyant billionaire couple’s interests might have been harmed when the business was sold after being seized by ANZ in late 2010.

PPB partner Simon Theobald told the Victorian Supreme Court he concentrated on running the ammonia plant, leaving the sales proceeds in the hands of fellow receiver Ian Carson. He said he did not recall being concerned about an alleged transfer of value from the Oswals, who owned 65 per cent of Burrup, to gas supplier Apache, when the plant was sold in November 2011.

In the litigation, which has already been running for two months, the Oswals seek at least $1.5bn from ANZ and the receivers, alleging their stake in Burrup was sold cheaply.

ANZ in turn accuses the Oswals of misappropriating about $150m from Burrup to spend on property, mansions, luxury cars and a vegetarian restaurant chain.

Mr Theobald faced stiff cross-examination yesterday from counsel for the Oswals, Tony Bannon SC, who questioned him in detail about his knowledge of the sales process.

“The sales process was not within the remit of what I was doing on the job,” Mr Theobald said. “I had very minimal involvement in the sales process.”

He said Mr Carson and others took care of selling the fertiliser plant. “I relied on the work of my partners and other advisers,” he said.

In November 2011, the receivers sold the plant to Apache and Yara, which already owned the remaining 35 per cent of Burrup, in a deal that at the same time increased the amount Burrup paid Apache for gas.

Mr Bannon read from an email in which Mr Carson appears to endorse concerns that the deal might transfer value from Burrup to Apache.

However, Mr Theobald said he could not recall Mr Carson raising those concerns with him.

“I’d trust Mr Carson to deal with things — he’s a very experienced member of the firm,” he said.

The case continues.