Phillips 66 to buy Prax Lindsey assets after liquidation

Phillips 66 Limited will purchase the assets of Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, Prax Terminals Killingholme Limited, Prax Terminals Jarrow Limited and Prax Downstream UK Limited. The Insolvency Service confirmed an agreement on 5 January 2026, with completion to follow once closing conditions, including regulatory approvals, are satisfied.

The companies were wound up from June 2025, which placed the refinery and related operations under the control of the Official Receiver. Gareth Allen, the Official Receiver, has overseen the liquidations with special managers from FTI Consulting-Matthew Callaghan, Jo Hewitt, Andrew Johnson and Sam Ballinger-supporting the work. All employees have been informed of the sale agreement, according to the GOV.UK update.

Let’s pause and define the basics. Liquidation (also called winding up) is the legal process for closing a company that cannot pay its debts. A court‑appointed Official Receiver secures the site, protects and sells assets, and distributes money to creditors. The Official Receiver also investigates the conduct of former directors; in this case, that inquiry remains ongoing.

It matters that this is an asset sale. Phillips 66 is buying things the companies own-plant, equipment, property and other rights-not the companies themselves. The insolvent companies remain in liquidation and will be dissolved in due course. Operations can continue under the Official Receiver if that preserves value, but the goal is to realise assets for the best return to creditors.

Where does the money go after a sale? UK insolvency law sets an order of repayment. Secured creditors with fixed charges are paid from the assets they’re secured against. The costs of the liquidation are covered. Certain claims have preferential status, including some employee pay and some HMRC liabilities. Lenders with floating charges are next, and part of those proceeds is set aside-the ‘prescribed part’-for unsecured creditors. Unsecured creditors receive a distribution only if funds remain; shareholders are last.

If you work at the site, here’s the practical bit. In a liquidation asset sale, TUPE-the rules that typically transfer staff to a new employer-does not usually apply. A buyer can choose to offer new contracts, but transfer isn’t automatic. If your role ends, you may be able to claim statutory redundancy, unpaid wages, holiday pay and notice pay from the Insolvency Service’s Redundancy Payments Service, subject to weekly caps. Keep payslips, contracts and any letters from the liquidator.

If you are a supplier, contractor or customer and are owed money, you are a creditor and should submit a proof of debt to the liquidator. Keep delivery notes, invoices and statements together. Operational handover details-such as product movements, storage access and terminal schedules-will come from the special managers at FTI Consulting. The Insolvency Service has also published a dedicated information page for customers, suppliers, creditors and sub‑contractors on GOV.UK.

What about the community around the refinery? Site safety and environmental obligations continue during liquidation. Any new operator will still need the right permissions and to satisfy regulators before completion. For local workers and businesses, the key question is whether the buyer intends to restart, expand or reconfigure operations; that will only be confirmed after approvals and completion.

Next steps are straightforward to track: first, regulatory approvals; then a legal completion date for the asset transfer; followed by updated notices to creditors about claims and timelines. Until then, the Official Receiver remains responsible for the site and for maximising returns to creditors, as set out in the government statement.

This is a technical story with everyday stakes. A buyer has been found, the law sets who gets paid in what order, and workers and suppliers have clear routes to information and support. Use this moment to check your documents, ask questions early, and follow the Official Receiver’s updates on GOV.UK.