Letter of comfort

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Revision as of 14:26, 1 October 2013 by imported>Doug Williamson (ACT Website link added 1/10/13 & spelling correction in definition)
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A formal letter written to a lender, normally by a parent company, indicating a willingness by the parent to accept some responsibility to honour the borrowing obligations of, or to otherwise support, a subsidiary or associated company, but without necessarily constituting a legal obligation to do so.


ACT Website links

A Practical Guide to Letters of Comfort, 25 September 2013


See also