Large PLC owns all the share capital in its subsidiary, Small Ltd. Last year Small's bank, Mudland Bank PLC, were uncertain about Small's future but, when the directors of Large PLC Provided a written statement to the effect that Large PLC would honour all of Small's debts, the bank agreed to continue to provide with extensive overdraft facilities. Now, Small has gone into insolvent liquidation with no assets to cover the debt owing to Mudland Bank PLC, and Large PLC are refusing to pay the amount owed. What legal action is open to Mudland Bank in relation to Large PLC's statement of last year? Advise Lion Ltd