CK Hutchison has launched international arbitration proceedings against Panama and is seeking damages of more than $1.5 billion for the “destruction” of its investments in Panama, reports Reuters.
CK Hutchison said Panama breached an investment protection treaty after a series of measures over the past two years that culminated in the “destruction of the concession contract for the ports of Balboa and Cristóbal and takeover of the port terminals”.
The conglomerate, owned by Hong Kong’s richest man, Li Ka-shing, has been caught in a diplomatic tussle since US President Donald Trump objected to Chinese ownership of ports along the Panama Canal, followed by Panama’s cancellation of its port concessions in the country.