Former Prax Refinery Owner Accused of £180m Fraud
Glencore has accused Winston Soosaipillai, the former owner of collapsed oil refinery company Prax Group, of orchestrating a $236 million (£177 million) fraud. The FTSE 100 commodity giant claims it was misled by false financial representations made by Soosaipillai regarding the solvency and ability to pay debts at Prax's Lindsey oil refinery in Lincolnshire before its collapse last year with over £1.5 billion in debt. In a High Court submission, Glencore argues that these misrepresentations voided contracts between it and Prax, allowing it to seek recovery of the crude oil still held by Prax or any refined products derived from it. The company is seeking to rescind its agreements with Prax before assets are distributed among other creditors. Lawyers for Prax have countered that Glencore should be treated equally as all other creditors and warned against disrupting the collective insolvency process, stating that any fraud would affect all parties involved.
Topics: corporate fraud legal action oil industry