Hong Kong-based CK Hutchison is seeking over $1.5 billion in damages from Panama after the government annulled its contract to operate two key ports on the Panama Canal. The move follows a January Supreme Court ruling that invalidated the agreement, with CK Hutchison accusing Panama of breaching an investment protection treaty—specifically the 1983 British-Panamanian bilateral investment treaty. The company’s local subsidiary, Panama Ports Company, is already pursuing $2 billion in separate arbitration proceedings against the government.

Operations at the Balboa and Cristóbal ports were transferred to Maersk and MSC respectively after CK was ejected. The dispute marks a major escalation in the ongoing legal battle over control of strategic canal infrastructure. Previously, CK Hutchison had negotiated a $23 billion deal with a BlackRock-led consortium to sell its non-Chinese port assets, but the plan faced resistance from Beijing, which sought to reshape the terms.

The conglomerate, controlled by Hong Kong’s wealthiest individual, Li Ka-shing, has been attempting to divest its overseas port operations amid growing geopolitical tensions.