Finance Deals & Syndicated Lending · glossary
A parent's letter saying it is its policy that a subsidiary will meet its obligations. English courts have treated such wording as a statement of present policy, not a promise. So it may give the lender no claim at all. Chapter 13
Explained in Chapter 13, Guarantees and Security: a Primer, of Finance Deals & Syndicated Lending.
A parent that will not give a guarantee sometimes offers a comfort letter instead. A typical one says that it is the parent's policy that its subsidiary will meet its obligations.Read Chapter 13, Guarantees and Security: a Primer →
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