CKH HOLDINGS (00001): Panama's Supreme Court Rules Concession Contract Unconstitutional; Company Initiates Arbitration

Stock News
Feb 04

CKH HOLDINGS (00001) has issued an announcement stating that its Board of Directors is aware of a declaration made by the Judicial Branch of the Republic of Panama on January 29, 2026, indicating that the Panamanian Supreme Court has decided to declare Law No. 5 of January 16, 1997, along with its amendments and extension laws, unconstitutional. Law No. 5 of January 16, 1997, is the relevant Panamanian legislation that approved the concession contract for Panama Ports Company (PPC), a subsidiary 90% indirectly owned by CKH HOLDINGS, which has been operating for nearly 30 years at the Ports of Balboa and Cristobal in Panama. According to PPC's understanding, the decision by Panama's Supreme Court is expected to take effect in early February 2026. PPC has obtained legal opinions indicating that the decision announced by the Panamanian Supreme Court, as well as the subsequent actions taken by the Panamanian government regarding PPC's terminal operations at the two ports, are inconsistent with the relevant legal framework and the law that originally approved the concession contract. On February 3, 2026, PPC initiated and will actively and decisively pursue arbitration against the Republic of Panama in accordance with the applicable concession contract and the arbitration rules of the International Chamber of Commerce. The Board of Directors strongly opposes the ruling and the corresponding actions taken by Panama; the Group continues to consult with its legal advisors and reserves all rights, including the pursuit of further domestic and international legal proceedings regarding this matter.

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