When funding issues derailed a major development project, our client – a cosmetic surgery firm –faced serious legal action. Unable to pay its main contractor, the company was threatened with winding up proceedings.
GCM took on commercial and contractual negotiations, successfully de-escalating the dispute. We brokered a deal to protect our client’s interests and get work back on track.
Our client is a private cosmetic surgery group operating clinics in Glasgow, Edinburgh, London and Manchester. The business specialises in high-end surgical and non-surgical aesthetic procedures.
Our was partway through a multi-million-pound conversion of a former bank. The building would be transformed into a state-of-the-art cosmetic hospital.
Halfway through the project, the business encountered unexpected funding challenges and could no longer make payments to the main contractor in accordance with their contract. As a result, the contractor suspended all works and threatened legal action – including winding up proceedings and pursuing equity in our client’s business.
The stakes were high: not only was the construction project in jeopardy, but so was the future of the company. Our client turned to GCM for urgent commercial and contractual support.
Initially engaged to provide legal and contractual guidance, GCM’s role evolved into leading negotiations with the aim of reaching an agreement with the main contractor that would bring them back to site.
Our client needed breathing room to secure additional funding. GCM negotiated directly with the contractor to de-escalate the dispute and avoid legal action. We brokered a profit share arrangement to protect our client’s ownership, instead of the equity originally pursued by the contractor.
Additionally, we agreed a detailed contract variation agreement, which:
GCM’s intervention was a turning point for the project. Work had been suspended for almost a year before we were appointed. Within two months, work was back on track and the business had avoided major legal action and financial losses.
We eliminated the immediate threat of insolvency, with the profit share model ensuring our client kept 100% ownership of their business. Once operational. the hospital is expected to generate millions per year in profit.
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