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Panama Supreme Court Voids CK Hutchison Port Contracts at Canal Terminals

The court cited unconstitutional concession laws following an audit that flagged irregularities, leaving control of Balboa and Cristóbal unresolved.

Overview

  • The ruling annuls Panama Ports Company’s licenses for the Balboa and Cristóbal terminals, with no transition plan specified by the court.
  • President José Raúl Mulino said he is in contact with Maersk’s port unit about temporarily managing the two terminals.
  • CK Hutchison rejected the decision as lacking legal basis, and its shares fell in Hong Kong, underscoring immediate market fallout.
  • The judgment throws into doubt CK Hutchison’s near-$23 billion planned sale of global port assets to a BlackRock- and MSC-led consortium.
  • Panama’s comptroller had alleged irregularities in the 2021 25-year extension and about $1.2 billion in unpaid remittances, while the dispute has drawn U.S. pressure and prompted a protest from Beijing.