Your Action Trust (YAT) was formed by the government of Gariani to borrow money from pension funds to invest in six banks to acquire majority stake that gives YAT the power to merge all the six banks and can exercise an American put option till exit period of 6years.

The arrangement also give YAT huge preference shares which is non-cumulative. Meanwhile section 5d and 4f of Gariani Banking law does not permit borrowed fund as part of the capital of banks, YAT is owed 100% by the government of Gariani which requires Parliament to approve the establishment of YAT.

YAT is to use the borrowed funds to capitalize the six banks. You are the investment advisor to one of the six banks finding it difficult to sign a temporary investment agreement with YAT.

Provide your professional advise considering the facts before you.