About one kilometre south of Europa Point, it ran into the stern of Torm Gertrude,[3] a double-hulled Danish petroleum tanker that was scheduled to complete a personnel transfer in the Spanish port of Algeciras.

[4] The tanker proceeded towards Algeciras after the collision, where it was secured, with its cargo of 39,000 tons of fuel, whilst New Flame took water by the bow.

It was also reported that the ship would not be salvaged in a single piece due to structural damage and would be instead cut in two parts at one-third of its length from the bow.

[13] Following heavily prolonged bad weather, the vessel broke into two on 22 December 2007, prompting an emergency meeting by the Government of Gibraltar with maritime authorities.

Following the collision, there were concerns raised that such incidents in the area were commonplace, with local politicians on both Gibraltar and Spanish sides calling for a review of procedures.

[16][17][18] On 21 August the Spanish Maritime Safety Agency (Salvamento Maritimo) announced that it had put in place its anti-pollution alert program.

[19] On 31 August the European Maritime Safety Agency announced that, at the request of the Spanish administration the ship Mistra Bay, which specialised in the treatment of pollution, would be sent to the area.

Subsequently Konstantinos pleaded guilty to leaving port without proper notification and paid a small fine, but charges of endangering shipping were dropped.