The diffuse instruments of company financing: the comfort letters

L. Miguel Pestana de Vasconcelos

Keywords

Typical Guarantes; atypical guarantes; company law; commercial law; banking law; finance

Abstract

The commercial trade keeps developing new instruments better suited to fill its needs. One such instrument is the comfort letters, which are closely related to company financing. In contrast to the different types of guarantees, they have a diffuse character, which makes the qualification of each individual comfort letter a difficult task. To that end, a system of groups of comfort letters is here developed, so that their general regime may be determined. In that framework it is possible to determine the regime of each individual comfort letter with a far greater degree of precision.