Keepwell Agreement

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Keepwell Agreement

An agreement between a parent company and a subsidiary in which the parent company provides a guarantee on the subsidiary's debt for the duration of the agreement. The keepwell agreement reduces the risk to the subsidiary's debt securities and may be beneficial for its stockholders.
References in periodicals archive ?
This linkage is enhanced by a keepwell and liquidity support deed and a deed of equity interest purchase undertaking, which signal a strong intention from HanRui to meet its obligations for the proposed notes.
Global law firm White & Case LLP has advised China Development Bank International Holdings Limited (CDBIH), China Development Bank Capital Corporation Limited (CDB Capital) and CDBI Treasure I Limited (the issuer) on the establishment of the issuer's US$500 million medium term notes programme, guaranteed by CDBIH and with the benefit of a keepwell and liquidity support deed and a deed of equity interest purchase undertaking provided by CDB Capital, and the subsequent issuance of US$500 million of notes under the programme, which closed on 2 August 2016.
pdf (distinguishing guarantees from keepwell agreements and comfort letters).
providing construction and/or address new litigation or keepwell guaranties.
KeepWell Foods LLC, Laguna Beach, CA, has launched a privately owned nutritional food and beverage manufacturing company.
Nikko Cordial Securities has a keepwell agreement entered into with Sumitomo Mitsui Banking Corp.
They are aiming to provide information and support on getting through the cold months with a KeepWell ThisWinter event.
The senior unsecured debt ratings of Sojitz subsidiaries supported by keepwell agreements have also been upgraded to B1 from B2, Moody's said.
To a lesser extent, guarantee variants such as keepwell, support and comfort letters are accepted based on the financial strength of the providing party and internal policies of the accepting party.
KeepWell Foods LLCannounced today its official launch as a privately owned nutritional food and beverage manufacturing company.
China Poly provides significant funding support to Poly, including providing a keepwell deed for Poly's offshore debt issues.