Panama Supreme Court Annuls CK Hutchison Port Licenses Sparking International Arbitration
Panama's Supreme Court has annulled the operating licences for two major ports. CK Hutchison initiated arbitration as the ruling impacts a global port sale.
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The Supreme Court of Panama 
PAhas annulled the operating licences for two major terminals at the Panama Canal, prompting CK Hutchison Holdings Limited to initiate international arbitration against the state. The court determined that the contracts for the Balboa and Cristobal ports violated the national constitution by granting the operator exclusive privileges and tax exemptions. CK Hutchison Holdings Limitedhas managed these strategic facilities for nearly three decades through its Panama Ports Company unit, and its board stated it strongly disagrees with the ruling. The company has reserved all legal rights, including recourse to further national and international proceedings.
PAhas annulled the operating licences for two major terminals at the Panama Canal, prompting CK Hutchison Holdings Limited to initiate international arbitration against the state. The court determined that the contracts for the Balboa and Cristobal ports violated the national constitution by granting the operator exclusive privileges and tax exemptions. CK Hutchison Holdings Limitedhas managed these strategic facilities for nearly three decades through its Panama Ports Company unit, and its board stated it strongly disagrees with the ruling. The company has reserved all legal rights, including recourse to further national and international proceedings.The legal upheaval comes as CK Hutchison Holdings Limitedattempts to finalize a planned $23 billion sale of its global port businesses. BlackRock, Inc. and Mediterranean Shipping Company are currently the lead bidders in a proposed buyout of 43 ports across 23 countries. Sources close to the matter have indicated that COSCO SHIPPING Holdings Co., Ltd. has also been discussed as a potential Chinese investor during the sale process. While COSCO SHIPPING Holdings Co., Ltd.reportedly sought a large stake in the consortium, other investors preferred the firm remain a minority shareholder.
