Advisers estimated the cost of additional termination liabilities

1.24 Rothschild estimated the possible financial consequences for the Prison Service of accepting the additional termination liabilities arising from the refinancing. They tested a range of assumptions about the probability of the contract being terminated prematurely, and the reasons for such termination, to determine what would be an appropriate level of compensation. The Prison Service then took this calculation into account in its negotiations with FPSL, along with a consideration of the overall level of benefits expected by FPSL and what alternatives FPSL could pursue without consent.