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ATHOS I and the Reported Dilemma

On June 9, 2011, Tradewinds reported that Tsakos and the UK Club face a "dilemma" on whether or not to stick with the US government in the long-running pollution case of the ‘Athos I’. As reported by Tradewinds:

"The UK Protection-and-Indemnity (P&I) Club and Greece’s Tsakos Shipping & Trading are faced with a $177m decision in Philadelphia — whether to stick with the US government against oil major Citgo or try to turn against the US and force it to remunerate Tsakos in the costly pollution case of the 60,900-dwt Athos I (built 1983, sold and renamed Gazelle, scrapped 2008). Final appeals are due on Monday in what could shape up as a three-way fight among oil-terminal owner Citgo Asphalt Refining Co, the US government’s Oil Spill Liability Trust Fund (OSLTF) and Tsakos along with the UK Club. So far Tsakos and its P&I insurer have fought as a team alongside the US Department of Justice (DOJ) in a seven-year fight against Citgo. But they lost this first round. In an April decision in the Eastern District of Pennsylvania (EDPA) federal court, Citgo and other affiliates won total vindication. Citgo’s damages could have amounted to around $177m. This includes a $45.5m payout by Tsakos and the UK Club, up to the shipowner’s liability cap per gross-registered tonne as prescribed by the US Oil Pollution Act of 1990 (OPA 90). Further costs were picked up by the OSLTF."

The Tsakos-UK Club-US co-operation is continuing as the co-op filed their appeals on Monday. So despite initial reports, no cracks in the co-op--yet.

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