The provided document is a binding comfort letter issued by a parent company or related entity to a lender, assuring the lender of its subsidiary's financial stability and commitment to meeting loan obligations.
It confirms approval of the loan facility terms for the subsidiary, assures the subsidiary's financial stability, and commits to maintaining its financial resources.
The letter contains provisions that require the parent company to provide prior notice to the lender before disposing of its interest in the subsidiary and provides reassurance to the lender regarding the subsidiary's financial position.
This document is intended for use in the United Arab Emirates.
This document is provided for reference only and is not intended to be, and should not be considered, legal advice. Determinations about whether this document will be appropriate in your particular situation or jurisdiction should be made after consultation with a legal counsel. Kanoony will not assume any legal liability that may arise from the use of this document.