The owners of the failed firm behind the Lindsey Oil Refinery are facing scrutiny from the Insolvency Service, the Government has confirmed.
Energy Minister Michael Shanks said the owners behind State Oil Ltd abandoned the company in a "poor state and gave the Government very little time to act", jeopardising hundreds of positions at its Immingham facility, which is now scheduled to shut in the coming weeks.
An inquiry into the conduct of Winston Sanjeev Kumar Soosaipillai and his wife Arany is currently under way, following standard procedure, with Mr Shanks reiterating appeals for the couple to "do the right thing" and offer financial assistance to employees at the location.
Administrators of the $10.2bn turnover State Oil Ltd - the parent organisation of the Lindsey Oil Refinery - have failed to secure a bailout package for the enterprise and are now examining the disposal of its assets.
The Government maintains it remains optimistic this could result in future employment opportunities at the Immingham site, reports .
The Unite union has urged the Government to step in and maintain crude oil purchases from the facility to allow additional time for a lasting resolution to be identified. Mr Shanks' complete statement read: "On Monday June 30, I made a Written Ministerial Statement and gave an Oral Statement regarding the deeply disappointing news that Prax Lindsey Oil Refinery had entered insolvency. Today, I am updating the House on the urgent work undertaken by the Official Receiver to manage the situation on the Prax Lindsey site and determine next steps.
"Since the refinery entered insolvency, we have worked urgently to ensure the safety of the refinery site, security of fuel supplies and protect workers. This has also allowed time for bidders to express an interest in the site.
"The Official Receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option. Having visited some of the workers on site on 17 July, I know this will be hugely disappointing news for them, their families and the local community.
"A package has been offered to all those directly employed at the refinery which guarantees jobs and pay over the coming months. The Government will also immediately fund a comprehensive Training Guarantee for these refinery workers to ensure they have the skills they need and are supported to find jobs, for example in the growing clean energy workforce.
"Furthermore, we understand the Official Receiver continues to explore various proposals for assets. I therefore remain hopeful that a solution will be found that creates future employment opportunities at the Immingham site.
"The refinery will continue to process crude for the rest of the month and the Official Receiver will continue selling refined products for a number of weeks, giving buyers time to adjust their supply chains.
"The former owners left the company in a poor state and gave the government very little time to act. That's why the Energy Secretary immediately demanded the Insolvency Service launch an investigation into their conduct and the circumstances surrounding insolvency, which is now underway and I have repeatedly called on the owners do the right thing and provide financial support to the workforce."
Joint administrators from Teneo said: "As is standard practice in all insolvency cases, the joint administrators will be reviewing the circumstances giving rise to their appointment and the cause of failure. One of the administrators' duties is to investigate the affairs of the companies, the matters that led to their insolvency and the conduct of the directors."
