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Keepwell Agreement
(redirected from Keepwell)

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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.


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KeepWell Foods LLC, Laguna Beach, CA, has launched a privately owned nutritional food and beverage manufacturing company.
They are aiming to provide information and support on getting through the cold months with a KeepWell ThisWinter event.
Unfortunately, the keepwells were not well explained by the Treasury, and it took some time for market participants to understand that they were the explicit guarantee--and even then, some observers questioned whether $100 billion was enough to cover possible losses at either firm.
 
 
 
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