CK Hutchison Holdings Limited has escalated its legal actions against the Panamanian State, challenging the seizure of assets and documents of its subsidiary Panama Ports Company (PPC), and qualifying the actions of the Panamanian government as "illegal."
Panamanian authorities took physical, administrative, and operational control of the two ports on February 23, following the annulment by the government of the 25-year extension of the concession that PPC held over both terminals. The ports now operate under temporary concessions granted to APM Terminals and Terminal Investment Limited (TIL), the investment arm in terminals of MSC.
CK Hutchison Holdings has submitted a supplement to its previous dispute notification against the Panamanian State under an investment treaty that provides for international arbitration, after what the company describes as a continued breakdown in communications with the authorities. "The State has maintained a pattern of ignoring communications and discontinuing consultations," the company pointed out, adding that the authorities had "occupied the ports and taken the property and personnel" of PPC "without transparency." CK Hutchison also noted having detected "inaccurate statements" from the State, which it believes have "further exacerbated the circumstances."
In parallel, PPC has submitted an administrative petition requesting reconsideration of Executive Decree number 23, which led to the occupation of the facilities and the confiscation of assets. The subsidiary is also challenging the alleged seizure of documents belonging to it. These actions add to a previous arbitration demand submitted under the rules of the International Chamber of Commerce.
