Glencore Energy UK Ltd v Prax Lindsey Oil Refinery Limited (in liquidation)

Facts

Prax Lindsey Oil Refinery Limited (PLOR) owned and operated a refinery at North Killingholme. Under a set of Transaction Documents entered into in July 2024, Glencore Energy UK Ltd was PLOR's exclusive supplier of crude oil. These documents were a Framework Agreement, a Crude Supply Agreement, individual Sales Confirmations, a Storage Agreement, a Security Agreement granting a floating charge over PLOR's refined product, and a guarantee from the parent, State Oil Limited. Title passed back and forth under the arrangements, and PLOR bought the oil on withdrawal from the storage tanks. On 30 June 2025 Michael Green J made a winding up order against PLOR on its sole director's petition, and the Official Receiver became liquidator. On 3 July 2025 the Special Managers agreed a Term Sheet under which PLOR paid for the crude still in the tanks. PLOR also paid a US$40 million processing fee, and Glencore permitted the sale of the refined product. No provision was made for about US$236 million owed for oil already withdrawn under five Relevant Sales Confirmations. Glencore then learnt of allegations that the director, Mr Soosaipillai, had fed fictitious invoices into the Group's securitisation facility. On 19 December 2025 it applied for leave to bring a claim for equitable rescission of those confirmations for fraudulent misrepresentation, together with proprietary tracing relief. PLOR opposed the application on four merits grounds.