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Sir is this definition for letter of comfort correct:
“It is a letter in which parent company expresses an opinion that subsidiary will be able to settle its own obligations.”?
I know it is not a guarantee letter and therefore has no legal existence.
It’s often more than is covered by your definition
If is issued by a aren’t entity at the request of the subsidiary auditors in which the parent entity confirms that it is their intention to support the subsidiary through its financial difficulties
But you are correct … it creates no legal obligation
OK?
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