Unconscionable lending contracts with banks
I am a representing a business. I have a client who has a lending agreement of $5 million. The agreement looks absolutely one sided to me in favor of the banks. And he has started to default on the agreement repayment. Are you able to review and give me advice on the agreement? I can send the loan facility agreement. The banks are now ready to file a case against my client and I need to do something. I am thinking of a suit on harsh clause etc. But it’s a difficult one. In Bangladesh – this would be probably the first one of its kind. I was basically thinking of getting a declaration that the agreement is not enforceable against my client because of unconscionability.
The banks were also negligent to disburse money on time and as a result the project got delayed and we failed in repayment. However - they postponed the repayment date. But each time they charged for it. They even took almost $500 thousand as interest during construction period. Basically, my client never saw the money - they deducted the amount from the facility before disbursement.
My dilemma is also to choose between unconscionability or negligence of banks in disbursements etc. I guess the first will benefit me more under the circumstances – especially when the banks file any recovery case against my client.