MM DD, YYYY
[YOUR COMPANY’s NAME]
1-1, Chiyoda 1-chome
We understand that your company has extended credit facilities to our subsidiary, __________________ (“Subsidiary”), and that, from time to time, your company may, upon the Subsidiary’s request, extend to it additional credit facilities, including _________ but not limited to any other type of credit.
In connection with the foregoing, we would like to advise and undertake with you as follows:
1. We shall not, without you company’s prior written consent, transfer or dispose of any portion of our equity or ownership in the Subsidiary, while any indebtedness of the Subsidiary to your company under the credit facilities remains outstanding.
2. It has been our long standing policy to stand behind our subsidiaries and to see that no creditor incurs any loss from extending credit to our subsidiaries, and we will maintain such policy.
3. We shall advise and cause the Subsidiary to provide you with the necessary information, as may reasonably requested by your company, in order to ensure adequate disclosure of its financial activities and business operations to your satisfaction.
4. Should we determine to issue guaranties or provide collateral to some or all of the Subsidiary’s creditors, we shall take all necessary actions so as to rank the credit facilities extended by your company pari passu with the indebtedness of such creditors.
Very truly yours,
[your customer’s parent companies name]