I could imagine two scenarios in which my idea of collateral...

I could imagine two scenarios in which my idea of collateral makes sense:

1: AB buys the shares of the shortfall but does not have all the cash and needs to pledge some collateral to the bank.

2: AB is involved in the financing and has to give a guarantee backed by shares.

In either case you do not want to risk all your holding,so you set up a new entity and transfer it just enough shares so that can satisfy the guarantee or collateral requirement.


All just some ideas of my part and I might be completely wrong....