Wait, don't be so harsh on him. There are different forms of collateral, there is a private collateral offering ie: homes, other business interest and there is what the company is putting up " treasury stock ". Then there is equity cash raised by shareholders that is used to pay debt releasing the collateral back to those individuals who put it up. This collateral is still debt on the books because now there is a credit slush fund due to the prepaid capital cost paid on the debt.
So in other words the collateral has become suspended where the votes are returned back to the ones who put up the collateral while there is still a vote given to the banking institution who holds the credit. Until this credit that was established is distinguished, collateral in its physical form returned back to its owners will the numbers reveal them selfs to the general public.
Now yes there is huge risk having cash that is debt yet to be used controlled by an outside sourse like a bank that could vote to return the portion of the capital cost paid for but yet to be utilized.
You have to remember also that a lot of times this is done to take the vote out of the common share holders hands and hand it back to the banking institution to raise more private capital as well private collateral. Both these group of investors have payment sceduals before the common share holder.
Give him a call, you may qualify to put up your home as collateral to be put on the voting list as an insider. Can't trade your stock but at least you will be privy to what the heck is going on as well you will be sworn to silence. No more flapping your gums here with nothing more then speculation to offer.
