Glencore has received permission from the High Court to pursue payment of $230 million for crude oil supplied to the now-defunct Prax Lindsey oil refinery. The FTSE 100 commodities trading company alleges that the crude oil contracts were obtained through fraudulent means, and it is seeking to cancel the relevant contracts and claim payment from any proceeds generated by the Lincolnshire refinery’s operations.

The Prax Lindsey refinery was part of the broader Prax Group, an oil and energy conglomerate that collapsed in June of last year. Following the collapse, the refinery was placed into a taxpayer-funded liquidation process overseen by FTI Consulting on behalf of the Official Receiver, a government-appointed insolvency official. A spokesperson for the Insolvency Service confirmed receipt of the High Court judgment but declined further comment.

Prax Group was founded by entrepreneur Sanjeev Soosaipillai and his wife, Arani. The couple expanded the business from its origins as a single filling station in St Albans into an international oil group. However, the parent company of Prax Group, State Oil, is currently under investigation by the Financial Reporting Council. The accounting watchdog is reviewing audits performed by KPMG and PKF Littlejohn, both of which have pledged full cooperation with the inquiry.

Soosaipillai has been engaged in legal battles over allegations of fraud connected to the collapse. Earlier this year, he obtained court approval to sell one of his mansions, part of an £18.3 million property portfolio, to finance his legal and living expenses. The entrepreneur was required to seek permission due to a freezing order imposed on his assets as part of ongoing litigation initiated by administrators acting on behalf of State Oil’s creditors. Soosaipillai continues to deny any wrongdoing in the matter.

The case underscores ongoing scrutiny of accounting practices and financial management within the Prax Group and its affiliates, while highlighting broader challenges faced by creditors seeking to recover funds following the breakdown of significant energy sector businesses. The legal proceedings remain active as Glencore moves forward with its claims and investigations into the circumstances surrounding the oil contracts continue.