letter of comfort

Definition from Wiktionary, the free dictionary
Jump to navigation Jump to search
Broom icon.svg A user suggests that this entry be cleaned up.
Please see the discussion on Requests for cleanup(+) for more information and remove this template after the problem has been dealt with.


  • Dear Sir, We confirm that we are aware of all the facilities which are presently made available by your company to Duke Securities Ltd (hereinafter referred to as the Company) and that you have our assurance that we will use our best endeavours to not permit the company to enter into liquidation (whether voluntary or compulsory) or to enter into any arrangement with its creditors without its liability to your company being completely discharged. — example letter of comfort (from Duke's parent company) quoted in Trevor Sykes, The Bold Riders, second edition, 1996, →ISBN, page 16

Alternative forms[edit]


letter of comfort (plural letters of comfort)

  1. (finance) A letter that is not legally binding but provides some form of assurance about the financial position of an entity.