Hong Kong's CK Hutchison said on Wednesday its Panama Ports Company unit has started international arbitration proceedings against Panama after the country's top court annulled its licences to operate two Panama Canal
Hong Kong's CK Hutchison said on Wednesday its Panama Ports Company unit has started international arbitration proceedings against Panama after the country's top court annulled its licences to operate two Panama Canal ports, in a case that could take years to resolve.
Panama's Supreme Court last week ruled the contracts violated Panama's constitution by giving the company exclusive privileges and tax exemptions.
It is unclear how long the arbitration proceedings could take, although given the political sensitivities involving the U.S. and China and the complexity of the deal, it could drag on for a number of years, some analysts said.
"This is an example of the increasing interconnection between international trade, geopolitics and law," said Jason Karas, international disputes specialist and managing partner of Karas So LLP in association with Mishcon de Reya.
The decision and move to seek arbitration casts further doubt on the future ownership of the two ports, which CK Hutchison has operated for nearly three decades, and the company's planned $23 billion deal to sell its port businesses.
"The board strongly disagrees with the determination and corresponding actions in Panama," CK Hutchison said in a statement to the Hong Kong Stock Exchange.
"The group continues to
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