On June 30, the refinery was suddenly placed into administration, causing government ministers to call for an investigation into Winston Soosaipillai, the owner of Prax Group.
Administrators sifting through the remains of State Oil, the parent company of the refinery, published a progress report on July 4, revealing a £70m debt owed to HM Revenue and Customs by Prax Petroleum. Including amounts owed by the refinery itself, taxpayers are thought to be owed up to £250m by the wider Prax Group.
Inter-company loans and guarantees are currently being scrutinized, totaling more than £1.5bn between the group’s companies being administered by Teneo.
Government officials are struggling to contact Soosaipillai, who is believed to have left the country after the collapse of his company. The Official Receiver has stated that a buyer could be found for the refinery, which has ceased production.
Michael Shanks, the energy minister, has urged Soosaipillai to do the right thing and support the workers who have lost their jobs.
