Letter of license

Letter of license,

Definition of Letter of license:

  1. Type of deed of arrangement offer by some or all creditors of an insolvent debtor whereby they bind themselves to refrain from taking any legal action to recover their dues for a specified number of days. Its objective is to allow some time to the debtor to sell-off his or her assets, or make some other arrangement to settle the debts without being declared bankrupt. Also called letter of leniency.

Meaning of Letter of license & Letter of license Definition