Glencore Cleared to Pursue $236M Lindsey Refinery Claim
London’s High Court has given Glencore permission to pursue claims involving around $236 million of crude oil supplied to Prax’s Lindsey refinery before the operator entered liquidation.
What Readers Should Know
- Glencore has received court permission to bring its claim against Prax Lindsey Oil Refinery Limited, which is in liquidation.
- The dispute involves about $236 million worth of crude supplied before the refinery operator collapsed.
- Glencore is seeking crude that may still be held by Prax or traceable proceeds from crude that was refined.
- The court has not ruled that Glencore is entitled to recover the money or upheld the underlying fraud allegations.
- Glencore alleges former Prax CEO Winston Soosaipillai misrepresented the company’s financial position. He has denied allegations of dishonesty.
- Phillips 66 separately acquired the Lindsey refinery assets through the insolvency process earlier in 2026.
MONTREAL (Oil Monster): Commodities trader Glencore has received permission from London’s High Court to pursue a lawsuit involving around $236 million worth of crude oil supplied to the now-insolvent Prax Lindsey Oil Refinery Limited before its collapse.
Glencore Wins Permission to Bring Claim
Prax Lindsey Oil Refinery Limited entered compulsory liquidation in June 2025, meaning Glencore required court permission to proceed with its claim against the company.
The Official Receiver, which is overseeing the liquidation, opposed Glencore’s application.
Judge William Trower nevertheless granted permission for the commodities trader to bring the case.
The ruling allows the lawsuit to proceed but does not determine whether Glencore will ultimately recover the crude oil, proceeds or damages it is seeking.
Claim Involves About $236 Million of Crude Oil
Glencore is seeking to recover crude oil that it supplied to the Lindsey refinery and which may still be held by Prax, or what it describes as the traceable proceeds of crude that was subsequently refined.
Glencore had been the exclusive crude oil supplier to the Lindsey refinery until Prax’s collapse.
The commodities trader argues that it continued supplying crude based on representations concerning the refinery’s financial position.
Tracing Refined Crude Could Be Difficult
Judge Trower acknowledged that Glencore could face difficulties tracing crude oil that had already been processed into refined products.
However, the judge said Glencore had a “seriously arguable case” that it could trace at least some of the relevant assets.
The tracing issue is central to Glencore’s effort to recover property or proceeds associated with crude supplied before the insolvency.
Glencore Alleges Financial Misrepresentation
The litigation also concerns the conduct of former Prax chief executive Winston Soosaipillai.
Glencore alleges that Soosaipillai fraudulently misrepresented Prax’s financial position and that the commodities trader supplied crude in reliance on those representations.
The allegations have not been proven in court.
Soosaipillai is also defending separate litigation brought by administrators of other Prax Group companies.
His lawyers declined to comment on Glencore’s latest court application. In a statement previously provided to the Financial Times, Soosaipillai said he had always acted in good faith to protect the refinery and rejected allegations of dishonesty.
Case References £738 Million Financing Facility
The allegations include claims involving a £738 million securitisation facility.
It is alleged that Prax companies sold at least £334 million of fictitious invoices in connection with the financing arrangement.
Those claims remain allegations and have not been established by a final court judgment.
Lindsey Refinery Entered Liquidation in 2025
Prax Lindsey Oil Refinery Limited entered compulsory liquidation on June 30, 2025, with the Official Receiver appointed as liquidator.
The refinery in northern England had crude-processing capacity of approximately 113,000 barrels per day and accounted for around 10% of the UK’s petrochemical supply before its closure.
The insolvency triggered a prolonged process to determine the future of the refinery site and associated infrastructure.
Phillips 66 Acquired Lindsey Assets in April
Phillips 66 completed the acquisition of the Lindsey refinery assets and associated infrastructure on April 28, 2026, following a sale process conducted by the Official Receiver and special managers.
The transaction involved the assets of the refinery and related Prax companies rather than the acquisition of Prax Lindsey Oil Refinery Limited itself.
Phillips 66 has said it plans to integrate key storage and infrastructure assets from Lindsey into its nearby Humber Refinery operations rather than restart Lindsey as a standalone refinery.
What Happens Next
The High Court ruling clears the procedural hurdle that prevented Glencore from pursuing its claim against a company already in liquidation.
The substantive questions remain unresolved, including whether Glencore can successfully trace crude or proceeds from refined products and whether the alleged financial misrepresentations can be established.
Glencore declined to comment following the ruling. The Official Receiver did not immediately respond to Reuters’ request for comment.
Glencore-Prax Case: Questions and Answers
Did Glencore win the $236 million lawsuit?
No. The High Court gave Glencore permission to bring the lawsuit. The underlying claims have not yet been finally decided.
What is Glencore seeking to recover?
Glencore is seeking crude oil it says may still be held by Prax or traceable proceeds from crude that was refined.
Is Phillips 66 being sued in this case?
Reuters’ report concerns Glencore’s claim against Prax Lindsey Oil Refinery Limited and allegations involving former Prax management. Phillips 66 separately acquired refinery assets through the insolvency process.
Is the Lindsey refinery operating again?
Phillips 66 has said it does not intend to restart Lindsey as a standalone refinery and instead plans to integrate key storage and infrastructure assets with its Humber operations.
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Courtesy: www.reuters.com