Glencore (LSE:GLEN) has received permission from London’s High Court in the UK to pursue a lawsuit against the insolvent Prax Lindsey Oil Refinery over crude oil valued at about US$236 million ($331.61 million).
Glencore required court approval because Prax Lindsey entered compulsory liquidation in June 2025. The Official Receiver, which is overseeing the liquidation, opposed Glencore’s application.
Mr Justice William Trower nevertheless granted permission for Glencore to commence and pursue the case.
Glencore is seeking to cancel five crude oil supply agreements and recover any oil still held by Prax or identifiable proceeds from oil that was refined.
The judge acknowledged that tracing refined crude could be difficult but found that Glencore had a seriously arguable case involving at least some assets. The ruling allows proceedings to begin but does not determine the underlying allegations or Prax’s liability.
Glencore alleges it supplied the crude based on fraudulent representations about the refinery’s financial position. The dispute is linked to allegations involving a £738 million ($1.39 billion) securitisation facility and at least £334 million of purportedly fictitious invoices, Reuters reports.
Former Prax CEO Winston Soosaipillai denies wrongdoing and says he acted in good faith.
The 113,000-barrel-per-day refinery in northern England accounted for about 10% of the UK’s petrochemical supply. Its assets were acquired by Phillips 66 (NYSE:PSX) in April 2026.
Glencore is a Switzerland-based producer and trader of metals, minerals, energy products, and agricultural commodities.
Write to France Pinzon at Mining.com.au
Images: Glencore
