Latest news with #SanjeevKumarSoosaipillai
The Guardian
14 hours ago
- Business
- The Guardian
Owners of collapsed oil refinery Prax Lindsey took £11.5m in pay and dividends
The married couple behind the Prax Lindsey oil refinery awarded themselves at least $15.9m (£11.5m) in pay and dividends in the years leading up to its collapse, it has emerged, as the government urged the company's boss to 'put his hand in his pockets' to help workers. Winston Soosaipillai, who goes by his middle names Sanjeev Kumar, jointly owned the refinery with his wife, Arani, until it plunged into insolvency on Monday. The failure of the refinery, which is one of only five left in the UK, has put 625 workers at risk and raised fears about disruption to supplies of customers such as petrol retailers and Heathrow airport. The sudden demise of the company, which Westminster sources said had assured ministers of its health just weeks ago, prompted the government to order an investigation into 'the conduct of the directors'. Sanjeev Kumar Soosaipillai is the sole director of both the refinery operation and its parent company, according to the latest available filings from Companies House. The scale of rewards on offer to Soosaipillai and his wife, who is the group's human resources director, are revealed in a series of annual reports and Companies House filings. The group paid a dividend of $5.2m to its shareholders in 2024, on top of a $2.1m payment in 2022, the documents show. The Soosaipillais own 80% of the group directly and 20% via family trusts, indicating that they have extracted $7.3m in dividends since buying the plant from French oil company Total in 2021. Pay disclosures also reveal the sums paid to the group's highest-paid director, understood to be Soosaipillai, given that he is the only director. The pay deals were worth a combined $8.5m between 2022 and 2024, the only years for which accounts have been filed. In total, the Soosaipillais appear to have handed themselves £11.5m in pay and dividends since buying the refinery in 2021. Details of the payouts emerged after Mark Shanks, a junior minister in the energy department, called for Soosaipillai to help fund compensation for some of the 625 workers affected by the collapse. Speaking in the House of Commons on Monday, Shanks said that the government 'expect[s] the owners to put their hands in their pockets and provide the support that those workers deserve'. The division that houses the facility, Prax Lindsey Oil Refinery Ltd, has lost £109m over the same period, although this is not uncommon in large oil and gas operations, whose trading divisions often make up the difference. Accounts also show that Prax was forced to revise the accounting treatment of one proposed dividend payment, after discovering it did not have enough cash to fund the payout. During 2023, the Prax Group holding company declared and paid a dividend of $4.98m to its shareholders, the Soosaipillais. These were paid 'in good faith', according to filings at Companies House, but the company later discovered that the payout 'exceeded the available level of distributable reserves'. The sum was reclassified as an amount owed to the group by 'related parties'. After the year end, a new dividend was declared, which accounts said would be satisfied by releasing the parent company from its obligation to repay sums already transferred. The Guardian approached representatives of Prax, including one who has previously answered questions on behalf of the Soosaipillais, for comment.
Irish Examiner
2 days ago
- Business
- Irish Examiner
Fears mount over British fuel supplies after refinery group collapses
The group behind one of Britain's largest oil refineries has collapsed into administration, sparking fears over oil supplies and jobs. State Oil — the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire, England — appointed administrators on Monday. 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. British 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 Britain 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." 'Protect workers' Trade union Unite said the government needed to urgently intervene to help protect British 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, a 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. Read More Oil and gas prices tumble following Israel-Iran ceasefire
Glasgow Times
2 days ago
- Business
- Glasgow Times
Government demands investigation after Lindsey oil refinery owner collapses
State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – appointed administrators on Monday. 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.
South Wales Guardian
2 days ago
- Business
- South Wales Guardian
Government demands investigation after Lindsey oil refinery owner collapses
State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – appointed administrators on Monday. 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.
Western Telegraph
2 days ago
- Business
- Western Telegraph
Government demands investigation after Lindsey oil refinery owner collapses
State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – appointed administrators on Monday. 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.
