Morgan & Morgan provided legal advise to Panama Port Company

Published 19 January 2011

With legal basis in local Panama laws, Panama Ports Company, S.A, as Seller and Lessee and Far East Leasing, as trustee of the FEPC Leasing Trust, as Buyer and Lessor, for the benefit of an indirect lessor affiliated with the Hong Kong and Shanghai Banking Corporation Limited, entered into an Agreement for the Purchase and Sale of all the cranes owned by the company, located within the Ports of Balboa and Cristobal, and a local lease back of the equipment to Lessee.

The work in charge of Morgan & Morgan involved the review of multiple financial documentation, since the whole transaction includes a first tranche for the Port Cranes owned by Panama Ports Company, S.A and two additional tranches for future acquisitions of equipment.

With the implementation of the first tranche of the transaction, Panama Ports Company,S.A received US$216,000,000.00 to be used to cancel some debts, to invest in future infrastructure and to be better subject of credit also for future and continuing investments in the ports.

The legal advice in Panama was trusted to Morgan & Morgan, on behalf of both HSBC and Panama Ports Company,S.A; through partner Inocencio Galindo, as leader of the HSBC team, also composed by Ramon Varela and Kharla Aizpurua; and partner Enrique Jimenez, as leader of the Panama Ports team, also composed by Roberto Vidal and Maria E. Brenes. Morgan & Morgan also assisted in obtaining the government approvals related to tax and other matters necessary to implement the structure.

For this job Morgan & Morgan got the confidence of both parties Lessee and Lessor, and a Chinese Wall was implemented to guarantee crystal clear professional advice avoiding any kind of conflict of interest.

Allen & Overy (Shanghai), legal counsel of HSBC, and Ashurst (Hong Kong) in association with Jackson Woo & Associates, legal counsel of Hutchison Port Holdings, participated in this transaction providing advice on English law, which governs several important transaction documents.