Panama misses deadline in CK Hutchison port dispute
CK Hutchison's Panama unit says the government missed a deadline to respond to an arbitration claim. The dispute follows the annulment of two major port deals.
The Panama subsidiary of Hong Kong conglomerate CK HUTCHISON HOLDINGS LTD reported on Monday that the national government failed to respond to an international arbitration claim by the established deadline. According to the company, the March 13 cutoff passed without a formal response from authorities regarding the legal challenge. This dispute follows the government's decision in January to annul contracts that granted the firm control over two major ports along the Panama Canal, a move prompted by a court ruling that deemed the agreements unconstitutional. The local unit, Panama Ports Company, also stated on Monday that officials have not returned investor documents that were allegedly seized during a raid on its offices last month. The company maintains that the documents were taken improperly during the law enforcement operation in February. The failure to meet the arbitration deadline and the ongoing retention of seized materials represent a significant escalation in the legal conflict between the global operator and the Panamanian state.
