Terms found
Action for the restoration of ownership
Amended dismissal
Annuity
Appeal against a decision
Asset
Assignment of Claims (Cession)
Austrian Public Employment Service (AMS)
Banking secrecy
Bankruptcy proceedings
BaSAG
Book value / carrying amount
Branch
Brokerage Agreement
Building Law
Business
Business entity
Call for Tenders
Capitalisation
Casual Employment
Certification
Change in Operations
Collective Bargaining Agreement
Company Agreement
Company Pension
Comparison of business assets
Compensation
Compliance
Compulsory enforcement
Consumer Protection Act
Corporate Reorganisation Act (URG)
Corporation
Covenants
Debt restructuring
Debtor
Declaration of consent
Decree
Deferral
Discount
Dividend
Double taxation
Double-entry bookkeeping
Easement
Employee Stock Ownership
Equity
Equity loan
Factoring
Fees Act
Financial plan
Foreclosure sale
Foreign-currency loan
General partnership
General Protection Against Dismissal
Global assignment
GmbH
Group taxation
Guarantee
Guarantee credit
Hidden reserves
Hire Purchase
Insolvency
Insolvency Act
Insolvency administrator
Insolvency estate
Insolvency register
Inspection of the Land Register
Inventory
Land Register
Letter of comfort
Lien
Limited partnership
Liquidation
Loan
Loss Carryforward
Maternity leave
Merger
Natural person
Nominal value
Option
Outsourcing
Part-time work
Partnership
Personal insolvency
Pledge principle
Preliminary decision on an appeal
Progression
Prohibition of alienation and encumbrance
Prohibition on the repayment of deposits
Property income tax
Provision
Proxy
Public Limited Company
Reallast
Repayment
Restriction on Transfer
Restructuring proceedings
Retention of title
Revision
Right of first refusal
Right of retention
Rights in rem
Self-consumption
Severance Pay
Severance Pay new
Severance Pay old
Shareholder loans
Short-time work
Silent partnership
Skimming procedure
Social Plan
Sole Proprietorship
Standard value
Stock
Subscription right
Superstruction
Supervisory Board
Tenancy agreement
Works Council
Letter of comfort
What is a letter of comfort?
A letter of comfort is a means of securing a loan. It refers to a statement made by a person closely associated with the debtor (the patron) to the lender, promising to ensure the debtor’s solvency or fulfillment of obligations. In terms of content, a letter of comfort can range from a completely non-binding statement (soft letter of comfort) to a commitment to use funds for a specific purpose (i.e., a specific type of obligation) to a guarantee (→ hard letter of comfort). However, a letter of comfort does not directly improve the debtor’s equity position and has no impact on the debtor’s balance sheet.
Learn more about our Corporate / M&A division. Please feel free to contact us for further information.