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Industry News from INSOL Europe
01 August 2025
The UK government has urged the owners of the insolvent Prax Lindsey Oil Refinery, Arani and Sanjeev Kumar Soosaipillai, to provide financial support for affected workers after more than 100 tanker drivers lost their jobs, with further layoffs expected. Energy minister Michael Shanks called on the couple to "do the decent thing" by offering direct financial aid or funding retraining schemes, as efforts to sell the refinery face difficulties.
The plant, one of only five UK oil refineries, collapsed under £250 million of debt, reportedly including a large sum owed to HMRC. The Soosaipillais, who are believed to have left for Dubai, took £11.5 million in pay and dividends since acquiring the site in 2021.
Official Receiver, Gareth Jonathan Allen, was appointed as Liquidator on June 30, 2025, following a winding-up order made against Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, and Prax Terminals Killingholme Limited. They are working to find a buyer, though prospects appear slim. Ministers are claiming they had been misled about the refinery's stability.
28 July 2025
Germany’s commercial real estate sector continues to face significant challenges as financing dries up, development projects stall, and major firms face insolvency. The Trianon Tower in Frankfurt has emerged as a prominent example, following the financial collapse of its ownership. The court-appointed insolvency administrator, Pluta, attributed the insolvency to “liquidity difficulties” and confirmed that discussions with creditors are ongoing. Pluta has engaged Mellum Capital to oversee a structured sale process for the high-rise property. While Mellum declined to comment, the outcome of the sale is expected to serve as a key indicator of investor sentiment and pricing stability within Germany’s office property market.
More at ET Realty from The Economic Times
20 July 2025
Failed used car dealer Cazoo has accumulated £6 million in administrators' fees since its collapse last year, according to recent documents from Teneo, the administrators. This sum is higher than anticipated, partly due to extensive dealings with HMRC. These fees, which are yet to be paid, will be drawn from the company's assets before any distributions to creditors.Cazoo's three entities, now renamed, collectively owed 10,107 creditors a staggering £259.2 million in unsecured debt. While creditor recovery remains uncertain, ordinary preferential creditors expect full repayment within six to twelve months. The administration is extended to May 21, 2026, with Teneo exploring dissolution, compulsory liquidation, or creditors' voluntary liquidation. (The Cazoo brand was eventually sold to Motors and has since relaunched as an online listings platform. The companies currently in administration have no link to Motors.)
More on this at Car Dealer Magazine
16 July 2025
On 30 June this year, CARMAT, the French MedTech company that designs, manufactures and markets the Aeson® artificial heart, announced it will file for insolvency and request receivership due to an inability to secure €3.5 million in emergency funding. The Company’s ambition is to make Aeson® the first alternative to a heart transplant, and thus provide a therapeutic solution to people suffering from end-stage biventricular heart failure.As a result of this announcement, trading of its shares (ALCAR) were suspended from June 30, 2025, before the market opened. The Versailles Economic Affairs Court will rule on the receivership request in the coming days. The suspension is expected to be lifted once the Court makes its decision public.
CARMAT, which requires €35 million to operate over the next year, aims to continue supporting current patients and maintain business activities during the proceedings.
Full story at EuroNext
06 July 2025
The latest Weil European Distress Index reveals that corporate distress across Europe is rising faster than expected, with the Retail & Consumer Goods sector now the hardest hit since the 2008 financial crisis. High input costs, tight credit, and weak consumer demand - especially in the UK - are driving the downturn. Overall, 7 out of 10 sectors are worse off than a year ago, with Industrials and Real Estate also facing significant pressure.The UK and Germany are among the most distressed economies, with Germany facing a third consecutive year of contraction. Geopolitical tensions, trade disruption, inflation, and squeezed household finances are weighing heavily on businesses. While some sectors like Travel & Hospitality remain resilient, the data signals a clear warning: companies must urgently strengthen operational and financial resilience to navigate continued economic volatility.
Read the full article and download the report at European Restructuring Watch