CK Hutchison Initiates International Arbitration Against Panama After Court Annuls Canal Port Licenses
CK Hutchison Holdings Limited has launched international arbitration after Panama's Supreme Court annulled licenses for two strategic ports at the Panama Canal.
Insights:
CK Hutchison Holdings Limited announced on February 4 that its Panama Ports Company unit has initiated international arbitration proceedings against Panama 
PA. The legal action follows a ruling from the Supreme Court of Panamalast week which annulled the company's licenses to operate the Balboa port and Cristobal port. The court determined that the existing contracts violated the constitution of Panamaby granting the operator exclusive privileges and tax exemptions.
PA. The legal action follows a ruling from the Supreme Court of Panamalast week which annulled the company's licenses to operate the Balboa port and Cristobal port. The court determined that the existing contracts violated the constitution of Panamaby granting the operator exclusive privileges and tax exemptions.The Balboa and Cristobal ports are located at the Pacific and Atlantic entrances of the Panama Canal, respectively. These assets are considered central to a proposed $23 billion buyout bid led by BlackRock, Inc. and Mediterranean Shipping Company for 43 ports in 23 countries currently held by CK Hutchison Holdings Limited. The annulment of the licenses has created immediate legal and operational uncertainty, casting doubt on the timing and viability of the massive divestment.
