This follows the refinery entering administration in June 2025, after “material irregularities” were discovered in a major loan facility. Attempts to find a buyer have failed, and the refinery has now ceased operations.
The parent company (State Oil) and several Prax subsidiaries are involved in legal claims by administrators for breach of director duties, misrepresentation, and other alleged misconduct.
Supply pressures
Lindsey was responsible for around 10% of the UK’s refined fuel production. Its closure increases reliance on imports and puts pressure on the UK’s remaining refineries.
Parts of the Lindsey infrastructure (storage tanks, pipelines, loading facilities) could come to market separately. This could present the opportunity for additional storage or logistical assets in the medium term, contributing to the mitigation of supply pressures.
The bottom line
The freezing injunction means Mr. Soosaipillai cannot move or sell assets up to £150m, with further claims alleging breach of duties and misrepresentation.
Regulators remain under pressure to examine how financial oversight failed.
Under terms of the order, he is required to provide information on all assets worth in excess of £50,000. The Guardian has reported Mr Soosaipillai had the option of paying £150m into the court or agreeing to provide another form of security, rather than submitting to the order.
The asset freeze against Prax’s owner is a legal milestone, but for distributors the immediate concern is supply resilience and cost control.
Image from library.