US Denies PE-Backed Shipping Co. $340M Loan Amid Suit

Law360, New York (August 2, 2012, 2:59 PM EDT) -- The U.S. Maritime Administration on Wednesday denied a Blackstone Group LP-owned petroleum shipping company a $340 million loan, two weeks after the company accused the administration of unfairly blocking its financing request because of its private equity backing.

If it had been approved, the loan guarantee would essentially drain the program's reserves, Maritime Administration chief David Matsuda wrote in a public letter to American Petroleum Tankers Parent LLC CEO Robert Kurtz. APT, in its suit against Matsuda and Transportation Secretary Ray LaHood, had sought to force...
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