CK Hutchison launches arbitration against Panama
CK Hutchison said on Thursday it had launched international arbitration proceedings against Panama and was seeking damages of more than US$1.5 billion for the "destruction" of its investments in the Central American nation. CK Hutchison said Panama breached an investment protection treaty after a series of measures over the past two years that culminated in the "destruction of the concession…
CK Hutchison has initiated international arbitration proceedings against Panama, demanding over US$1.5 billion in damages, due to the destruction of its investments in the Central American country. The conglomerate claims Panama violated an investment protection treaty following a series of actions over the past two years that led to the dismantling of the Balboa and Cristóbal ports' concession contract and the seizure of the port terminals.
The Hong Kong-based company, majority-owned by Li Ka-shing, the wealthiest person in Hong Kong, is embroiled in a diplomatic dispute, beginning with US President Donald Trump's objection to Chinese ownership of ports adjacent to the Panama Canal, followed by Panama's revocation of its port concessions within the nation. Its subsidiary, Panama Ports Company (PPC), persists in separate international arbitration proceedings, commenced in February following the country's highest court nullifying its licenses to operate two Panama Canal ports.
In March, PPC expanded its claims to over US$2 billion, alleging the state's unlawful seizure of two port terminals and the company's assets.
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