An attorney of one of the partners in a project for establishing a factory using gamma radiation for sterilization, nuclear energy that was considered “green”, came with another partner (the entrepreneur) for consultation on how to solve the conflict between a third partner and the entrepreneur, and save the project, which was effectively lost and without a future.
As part of the solution to the conflict and freeing the project’s logjam, the project was advanced both in solving the dispute between the partners and in the form of a projector to lead the project practically.
At the same time as the negotiations for resolving the conflict, and as a first stage, the connections with the regulatory parties (the investment center) and with the Canadian know-how and equipment supplier was resumed and the project’s business concept was changed in terms of planning its formation, to allow for better business flexibility and results to be achieved.
Based on updated data from the Canadian supplier, before a final deal was worked out with it, a decent business plan was prepared to allow for enrolling outside financing sources, including Canadian governmental financing for acquiring Canadian know-how and equipment.
Although the newly chosen area (according to the new business concept and after checks and approval of the atomic energy committee) was outside the Green Line, negotiations started (alongside the negotiations with the Canadian supplier) with a Canadian governmental financing entity. This financing entity announced, in reply to a 100% financing request, that it could finance only 85%, subject to improving the capital structure of the company that had incorporated the venture – which capital was based on a shareholder loan.
Later, a then well-known real estate developer was enrolled in the project, which demanded a change in the engagement structure, which demand resulted in the provision of services to cease (see litigation chapter – “claim as leverage for negotiations”).