A subsidiary of Hong Kong conglomerate CK Hutchison Holdings has expanded international arbitration claims against Panama, alleging damages have “escalated beyond US$2 billion” in what it called an “illegal takeover” of ports and property.
The expanded claims, announced on Tuesday local time by the Panama Ports Company (PPC), part of Hong Kong tycoon Li Ka-shing’s family-owned conglomerate, came a month after authorities took control of terminals at the ports of Balboa and Cristóbal near the Panama Canal.
The move followed a January ruling by the country’s top court declaring the company’s concession “unconstitutional”.
In Tuesday’s statement, PPC said the company had expanded its claims based on “damages that have now escalated beyond US$2 billion”.
It explained that the claims arose from “extreme executive actions, the takeover and occupation of facilities, the seizure of proprietary and protected documents, and a range of related misconduct” that lasted more than a month, following what it described as Panama’s year-long “attack campaign” against the company.
“In a chilling signal to foreign investors, Panama is seeking to slow the arbitration, drag into the case parties that are not a part of the applicable contract, and continue its attack campaign, as PPC had warned,” the company added.
The arbitration is proceeding under the rules of the International Chamber of Commerce Court of Arbitration, PPC said, adding that Panama had yet to coordinate ‘access to property or compensation’ and had made ‘inaccurate’ statements regarding the company and its assets.
