APT sues MARAD over stalled Title XI application

APT stackJULY 18, 2012 — American Petroleum Tankers Parent LLC (APT) has filed suit against the United States, the Secretary of Transportation and the Administrator, Maritime Administration, in U.S. District Court for the District of Columbia, Washington, D.C. (Case Number: 1:2012cv01165)
APT, which is controlled by private equity investor the Blackstone Group, has had a Title XI loan guarantee application on file with Marad since December 2010. The applications relate to the construction of five Jones Act product/chemical tankers on order at NASSCO. (Readers with long memories may recall that these were the ships originally ordered by the ill-fated U.S. Shipping Partners LLC).

The application initially sought guarantees on $470 million of shipbuilding costs. As the approval process has dragged on APT has reduced the requested amount first to $400 million and then to $340 million.

According to Reuters, APT's suit alleges that it is being discriminated against because it is owned by a private equity firm and its application is not being judged on its merits. To read the Reuters report CLICK HERE

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