Latest news with #SanjeevSoosaipillai
BBC News
5 days ago
- Business
- BBC News
Lindsey Oil Refinery owners urged to financially support workers
The Energy Minister has written to the owners of the ill-fated Prax Lindsey Oil Refinery calling on them to "do the decent thing" and financially support affected workers after the company filed for a letter to Prax Group owners Sanjeev and Arani Soosaipillai, Michael Shanks said they had a responsibility to staff and the government was "urgently exploring what support can be offered to the workforce at this difficult time".At least 420 jobs are at risk at the refinery in North East Lincolnshire, with 120 HGV drivers made redundant from the company's main delivery firm on said the liquidator was "urgently assessing whether a sale of the refinery is possible". According to Unite the Union, 1,000 jobs could be affected when taking into account contractors and the supply chain, after Prax Group fell into administration at the end of Monday, administrator Teneo said a few of the 137 employees who had been made redundant at delivery firm Axis Logistics would be kept on "for a limited period to support the orderly closure of the business" after it "suffered" as a result of the wider group the letter, Shanks said the official receiver's assessment would be "difficult given the state the business had been left in"."Rightly, urgent questions are now being raised about what support will be offered to them by yourselves, as the owners," he said. The minister revealed that in a letter from the owners on 30 June workers were told they were "the lifeblood of Prax, sustaining the business through its many successes" and their "loyalty, resilience and hard work" had helped build their wrote: "We strongly encourage you to do the decent thing and publicly commit to make a voluntary financial contribution to support workers at PLOR [Prax Lindsey Oil Refinery]. "This could be through direct financial support to them or funding for retraining schemes to ensure that they can pursue new job opportunities if the refinery cannot be sold."He told the couple to engage with the workforce in considering options."A public show of support for the workers from yourselves would go some way to demonstrate your regret over the insolvency of PLOR and the core values of responsible business ownership."It is the very least they deserve," he Group bought the refinery from French company Total in 2021. The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February Official Receiver is ensuring continued safe operations at the site, the government previously Group and its administrators have been contacted for comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Telegraph
6 days ago
- Business
- Telegraph
Hunt for owner of oil refinery that collapsed owing taxman £250m
Authorities are hunting for the owner of an oil refinery that collapsed a week ago owing the taxman £250m. Officials tasked with rescuing the Prax Lindsey oil refinery are unclear as to the whereabouts of Sanjeev Soosaipillai, its chief executive. He has been uncontactable since the business collapsed last week, with calls and emails going unanswered. Some sources close to the situation have suggested he may be out of the country, fuelling questions about the collapse of his $10bn (£7bn) energy empire, Prax. Mr Soosaipillai is under mounting pressure after disappearing in the wake of his company's unexpected insolvency over a week ago. Workers have accused him of abandoning the business and its staff. Ed Miliband has already launched an urgent investigation into the collapse of Prax, which owned the Lindsey refinery. The Energy Secretary said he was concerned about 'the conduct of directors' in a statement earlier this month. The insolvency has put hundreds of jobs at risk and raised fears over Britain's fuel supplies. One employee questioned whether the collapse was down to 'complete incompetence'. Another said that workers had been 'fooled' by the owners, who oversaw a period of 'utter madness' and incomprehensible decision-making. The Telegraph previously revealed that Mr Soosaipillai and his wife, Arani, who were both the sole owners of the Prax business, paid themselves a £3.7m dividend the year before its collapse despite posting $30m of losses. One worker said on social media: 'I hope the Government catch up with you and make an example of yourself and partners and make you pay for what you have done.' They said Mr Soosaipillai 'stuck it to us and totally fooled me and many others who bought into his vision'. Criticism of the company's owners comes amid questions over an unpaid £250m tax bill at the refinery, which supplies 10pc of Britain's fuel. It is understood Lindsey collapsed after battling severe cash flow problems for more than a year, which prompted bosses to seek more lenient repayment terms from HM Revenue & Customs. This led to the company unsuccessfully lobbying for government support last year. As well as owning the refinery, Prax's energy empire also includes petrol stations and oil storage sites. The official receiver has taken over the refinery, with local MPs set to visit the site in the coming days.
The Guardian
6 days ago
- Business
- The Guardian
Prax Lindsey oil refinery owners urged to ‘do decent thing' for workers
The UK government has written to the husband-and-wife team behind the stricken Prax Lindsey oil refinery in Lincolnshire urging them to 'do the decent thing' and support affected workers financially, amid mounting concern that finding a buyer for the plant will be difficult. In a letter to the Prax Group owners, Arani and Sanjeev Kumar Soosaipillai, seen by the Guardian, the junior energy minister Michael Shanks said the government was 'urgently exploring what support can be offered to the workforce at this difficult time'. He added: 'However, we strongly encourage you to do the decent thing and publicly commit to make a voluntary financial contribution to support workers at [Prax Lindsey Oil Refinery]. 'This could be through direct financial support to them or funding for retraining schemes to ensure that they can pursue new job opportunities if the refinery cannot be sold.' More than 100 fuel tanker drivers were told on Monday they had lost their jobs. Further job losses are expected to follow at the affected divisions of Prax Group, which employed 625 people. The Soosaipillais have taken about £11.5m in pay and dividends out of the company since buying the refinery in 2021, a Guardian analysis suggests. According to a source close to the company, the couple left the UK for Dubai last week as the plant plunged into insolvency. Several potential buyers expressed tentative interest in the site – one of only five oil refineries left in the UK after the closure of Grangemouth earlier this year – in the immediate aftermath of the debt-laden company's sudden implosion, according to well-placed sources. However, Shanks's letter to the Soosaipillais appeared to cast some doubt on the likelihood that a buyer can be found for the business, which reportedly owed £250m to HM Revenue and Customs when it failed. 'While the official receiver is urgently assessing whether a sale of the refinery is possible, this will be difficult given the state the business has been left in,' Shanks said. The official receiver, a government employee managing the insolvency, has set a deadline of about two weeks to identify a white knight investor to rescue the plant, Sky News reported on Tuesday. Last week's failure of Prax Lindsey prompted anger from ministers in the energy department, who were aware of the company's parlous financial position but had been assured by the Soosaipillais that its survival was not at stake. Multiple sources said that Prax Group, which also owns oilfield investments in Shetland and petrol stations, had got into difficulty after racking up massive debts to fund ambitious acquisitions, including the $167m purchase of Lindsey from Total in 2021. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The refinery is continuing to operate after the government agreed to buy fuel from Lindsey's supplier, the global commodities trading house Glencore. A spokesperson for the Department for Energy Security and Net Zero played down concerns about fuel supplies, after reports that petrol stations in Lincolnshire, close to the refinery, had run out of fuel. 'Deliveries from the Prax Lindsey oil refinery have resumed,' the spokesperson said. 'The official receiver is ensuring continued safe operations at the site, while options, including a potential sale, are explored. 'The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country, and stock levels are normal across the UK. 'Our sympathies are with workers, who have been made redundant by Axis Logistics Ltd, part of the Prax Group. These workers are in high demand and we will work to ensure their onward employment.' The Guardian has approached a representative of the Soosaipillais for comment.
