By P.R. Venkat
CK Hutchison said it has commenced arbitration against Panama after the country's supreme court voided a contract for the Hong Kong-listed company to operate two ports in Panama.
"The group continues to consult with its legal counsel and reserves all rights, including recourse to additional national and international legal proceedings in the matter," CK Hutchison said in a filing Wednesday.
CK Hutchison said that its subsidiary, Panama Ports, started arbitration proceedings against Panama under International Chamber of Commerce rules on Feb. 3.
Late last month, Panama's Supreme Court annulled a contract for CK Hutchison to operate ports at either end of the Panama Canal. The move handed President Trump a victory in his security ambitions in the Western Hemisphere and dented China's influence in the region.
The high court said the terms under which CK Hutchison runs the ports of Balboa on the Pacific Coast and Cristobal on the Atlantic side were unconstitutional.
CK Hutchison said Panama Ports has been advised that the Supreme Court's decision and related actions by the Panamanian government regarding its terminal operations are inconsistent with legal frameworks and concession law.
CK Hutchison can't appeal a Supreme Court ruling, but it can request clarifications that could delay the termination of its operating license.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
02-03-26 2028ET
