Case-2 : Willful default by M/S Skyscraper Ltd.

Case Scenario :

M/S Skyscraper Ltd. a renowned real estate company, availed a term loan of BDT 500 crore from ABC Bank in 2020. The loan was sanctioned for the development of a commercial real estate project in Dhaka.

By mid 2023, the company defaulted on repayments. Upon investigation, the bank found :

• The company had diverted a substantial portion of the loan amount to unrelated business activities.
• Directors has siphoned off funds to associate companies owned by family members.
• The project site remained largely undeveloped and there were no visible signs of construction progress.
• Despite defaulting, the promoters continued to maintain a lavish lifestyle and acquired high value personal assets abroad.

Based on this, ABC Bank initiated action under Bangladesh Bank's guidelines and declared M/S Skyscraper Ltd. as a willful defaulter.

Based on the case study above, answer the following questions :