Bergamo Acquisition Corp. (BGMO)

[Aston Martin]

Regarding the function of a Letter of Credit misunderstandings should be avoid: A letter of credit is not real money!

The documentary letter of credit simply is a document which secures payment IF and AFTER an importer has delivered goods!
The bank of the importer (Pakistan) promises to secure the payment of goods, delivered by the exporteur (BGMO). This promise functions independent to the underlying transaction (in case of BGMO/Pakistan: Letter if Intent)

By this form of document the importor/buyer (Pakistan) receives the assurance that payment will be done only if the seller of the goods (BGMO) delivered through the submission of proper proof documents. The seller/exporter (BGMO) gets the assurance that he, after delivery of the goods and after the submission of proper documents, will receive the money for his goods (solar stuff, etc.)

This simple explaination shows easily: A letter of credit is not 'real money' but only an assurance of payment IF a transaction has been done. So, if the letter of intent disappears in Nirvana and the deal between Pakistan and BGMO will not be hold and the letter of intent will expire, this letter of credit hs no function anymore.

This might be a simple and very short explaination, but nevertheless the only correct explaination for a 'Letter of credit'. So, at the current stage of understanding between Pakistan and BGMO, this is still not 'real' money for BGMO.