Government demands investigation after Lindsey oil refinery owner collapses
A separate winding-up order has also been made against the Lindsey oil refinery and related businesses and a liquidator has been appointed.
More than 180 staff are employed by State Oil, while it is thought that around another 420 work at the Lindsey refinery.
Energy minister Michael Shanks said the firm's collapse was 'deeply concerning' and that the company had left the Government with 'little time to act'.
He said the Government is demanding an investigation into the conduct of the company's directors and the circumstances surrounding its failure.
The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland.
Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021.
Mr Shanks said: 'There have been longstanding issues with this company and workers have been badly let down.
'The Secretary of State is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency.
'The Government will ensure supplies are maintained, protect our energy security, and do everything we can to support workers and the local community, including engaging with trade unions and industry bodies.'
He added: 'The Government believes that the business's leadership have a responsibility to the workers and the local community.
'We call on them to do the right thing and support the workers through this difficult period.'
Trade union Unite said the Government needed to urgently intervene to help protect UK fuel supplies and jobs.
Unite general secretary Sharon Graham said: 'The Lindsey oil refinery is strategically important and the Government must intervene immediately to protect workers and fuel supplies.
'Unite has constantly warned the Government that its policies have placed the oil and gas industry on a cliff edge.'
Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day.
Clare Boardman, joint administrator of State Oil and Prax, said: 'We appreciate that this is a very difficult and uncertain time for the employees and everyone involved and we will be on site to support them during this challenging period.
'We will be considering all options for the group, including the prospect of a sale for the group's upstream business and retail operations in the UK and Europe, all of which remain outside of insolvency.
'We thank the group's team members and other stakeholders for their continued support.'
Prax Group was not immediately available for comment.
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Barrier to new savers Commentators and campaigners are keen to see Lewis, founder of MoneySavingExpert, says the £450,000 threshold is "unjust, unfair and the rules need changing"."If a LISA is used to buy a property above the threshold, there should be no fine, they should get back at least what they put in," he said."And this flaw doesn't just hurt those with LISAs. It puts off many young people, especially from lower income backgrounds, who tend to be more risk averse, from opening LISAs in the first place."Helen Morrissey, head of retirement analysis at investment platform Hargreaves Lansdown, says that LISAs had proven popular among the self-employed, who can save for retirement despite not having access to a workplace she called for the penalty for early withdrawal to be eased, and the age limit for opening a LISA to be extended. Savings habit LISAs were launched under the then-Conservative government in April then, 6% of eligible adults have opened one, with about 1.3 million accounts still open, according to the most recent are clearly divided among those account holders about how well they government says the LISA is a source of celebration but, in time, it could well address some of their concerns."Lifetime ISAs aim to encourage younger people to develop the habit of saving for the longer term, helping them to purchase their first home or build a nest egg for when they are older," a Treasury spokesperson said."We welcome the committee's report and will now review its findings and respond in due course." Additional reporting by Alex Emery, Kris Bramwell and Shanaz Musafer
