Alpha Bank recently entered into a Loan Agreement with Estelle Limited (‘Estelle’). The form of the Loan Agreement is based on the London Loan Market Association standard form. The loan has yet to be drawn down by Estelle. Alpha Bank is very concerned about its obligations under the loan in light of the ongoing international credit crisis and seeks your advice on whether there are legitimate grounds upon which it can refuse to comply with any drawdown notice delivered by Estelle and also the potential liability it may be subject to in the event it refuses to comply with any such drawdown notice.
