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We are at the forefront of PFI exits, having advised on both the first voluntary and default termination of a PFI scheme, as well as acting on a managed exit of a PFI scheme.
We thoroughly review the existing PFI contract to identify the right to terminate, and quickly mobilise to develop a bespoke termination strategy for our clients.
We effectively engage in negotiations with Project Co to facilitate direct and transparent communication, seeking to maximise cost-saving opportunities for our clients, and ensure a smooth transition of assets post-PFI.
We draft bespoke termination notices and settlement and transfer agreements, as well as provide clear advice regarding the cost implications of termination.
In the event of a dispute, our multi-disciplinary team can confidently navigate the complexities of formal proceedings and support the swift resolution of contentious issues.
We have successfully advised various public sector clients in relation to the termination of their PFI contracts including:
- Acting on behalf of of an NHS Foundation Trust in the first solvent managed exit of a PFI scheme. The scheme was due to expire in 2028, but had faced numerous challenges with building defects and poor performance from Project Co. Our client sought to regain control of the building to conduct necessary remediation works. The solvent managed exit successfully returned control of the building to the Trust, while ensuring remaining project funds were invested in rectifying defects and compensating our client.
- Identifying Project Co Events of Default and assisting clients to either preserve or exercise termination rights arising from Project Co’s breach;
- Advising clients on the consequences of termination, including contractual timescales and practical considerations to ensure continuity of services and staff on termination;
- Drafting due diligence questionnaires prior to termination to address a range of practical matters relating to termination (e.g. information relating to maintenance, lifecycle and transfer of staff, including pensions information);
- Drafting and serving compliant termination notices;
- Advising clients on the Compensation on Termination provisions, including amounts entitled to set off any potential payment to Project Co;
- Coordinating experts and counsel to support clients’ positions regarding Compensation on Termination;
- Attending without prejudice meetings with clients, Project Co and funders to seek amicable resolution;
- Representing clients at mediations seeking to settle disputes relating to Compensation on Termination;
- Representing clients in formal legal proceedings relating to Compensation on Termination.