Wragge & Co has taken a lead role on the renegotiation of a €20bn (£12.2bn) defence contract for the supply of military transport aircraft to seven European nations.

The contract will see Airbus Military develop and supply up to 170 A400M aircraft to Belgium, France, Germany, Luxembourg, Spain, Turkey and the UK.

Wragges advised the Organisation for Joint Armament Cooperation (OCCAR), the European defence procurement agency which acted as purchasing agent for the seven governments, fielding a team led by projects partner Michael Whitehouse (pictured) alongside commercial litigation partner Clark Sargent.

As part of the deal, the national firm designed a 'standstill' structure to allow time for the renegotiation of the programme when technical issues led to delays. Airbus Military's parent company EADS had threatened to pull the plug on the project unless the partner nations came up with funds to cover cost overruns of about €5.2bn (£3.2bn).

Linklaters, meanwhile, advised Airbus on the renegotiations. The firm declined to comment on which partner led the magic circle firm's team.

Commenting on the project, Whitehouse said: "This landmark, high-profile project for OCCAR involved working with seven European nations – it demanded a thorough understanding of the defence sector and a pragmatic, commercial approach.

"The use of an innovative standstill structure gave the parties breathing space to agree revised commercial terms and allow the project to go forward."