The company alleges that Panama breached an investment protection treaty through a series of regulatory actions between 2025 and 2026, effectively destroying the economic value of its long-standing contracts. This legal escalation follows a January court decision that voided the concessions, a move widely interpreted as a byproduct of intensifying U.S.-China geopolitical friction. While Beijing has denounced the ruling as unreasonable, the Panamanian government has effectively moved to install new operators at the sites.

Beyond its primary claim against the state, the group’s subsidiary, Panama Ports Co., is pursuing separate arbitration against A.P. Moeller-Maersk, alleging the shipping giant conspired to undermine its contract. These complications have already disrupted broader corporate strategies, including a failed $23 billion divestment deal involving BlackRock. Despite reporting a $63.3 million hit to its Ebitda, Group CFO Kwan Cheung maintains that the company’s legal position remains robust. Consequently, leadership has signaled it will not book an impairment on the assets, betting that international law will eventually force a reversal or compensation for the lost terminals.