Highlights
- Commodity giant claims former Prax owner was “centrally involved” in alleged misconduct
- The claim relates to oil supplied to Prax’s Lindsey refinery before the company collapsed in 2025.
- Prax entered insolvency with more than £1.5bn in debts after “material irregularities” were found in a loan facility.
FORMER Prax owner Winston Soosaipillai has been accused of being involved in an alleged $236 million (£177m) fraud linked to the collapsed Lindsey oil refinery in Lincolnshire.
According to a report by The Telegraph, commodity trading company Glencore told the High Court that Soosaipillai was “centrally involved in the fraudulent conduct” which led to it supplying more than $236m worth of oil to Prax before the company collapsed.
Glencore claims it was “induced by fraudulent misrepresentations” to provide oil to Prax’s Lindsey refinery near Grimsby. The company alleged it was given misleading information about Prax’s financial position, including claims that the business was solvent and able to meet its debts.
In court submissions, lawyers for Glencore said: “Prior to the liquidation, Mr Soosaipillai was, in fact, conducting the business of the Prax Group ... fraudulently.”
The company also claimed that statements made to it were “untrue and misleading” and alleged that Soosaipillai was aware of this.
Glencore is seeking to recover crude oil it said it still owns, as well as refined products made from that oil at the refinery. The company argued that alleged false information provided by Prax means its agreements should be cancelled, allowing it to reclaim its products before the company’s remaining assets are divided among creditors.
However, lawyers representing Prax argued that Glencore should be treated like other creditors in the insolvency process. They said allowing Glencore’s claim could create “chaos” and go against the principles of collective insolvency.
“Any fraud that may have taken place would, if demonstrated, be a misfortune that befell all the creditors of the company in common,” Prax’s lawyers said, adding that Glencore had not suffered a unique loss compared with other creditors.
Prax, founded by Winston Soosaipillai and his wife Arani in 1999, expanded from owning petrol stations into a global energy group. The company bought the Lindsey oil refinery from French energy firm TotalEnergies in 2021 as part of a series of debt-backed acquisitions.
The business later collapsed in 2025 after “material irregularities” were discovered in a loan facility with HSBC. The issue led to the cancellation of the loan and triggered a financial crisis, leaving Prax with more than £1.5 billion in debts.
Soosaipillai and his wife each hold a 40 per cent stake in Prax directly, with the remaining shares held through trusts where both are trustees.
A representative for Soosaipillai was contacted for comment, according to The Telegraph. The allegations have not been proven in court.
