What is 'locked-up cash', and how does it differ from working capital?

locked-up cash (or 'trapped cash') = cash that exists economically but is not available for group financing. Typical reasons:

• Cash at foreign subsidiaries whose repatriation triggers withholding tax or capital controls (e.g. China, Russia — relevant for multinationals with subsidiaries there).
• Restricted cash for guarantees, escrows, project bonds.
• Cash in joint ventures requiring minority-partner approval.
• Pension-plan assets (segregated for beneficiaries). Difference from NWC: locked-up cash is not operating working capital but a financing restriction. IB consequence: (a) in the EV-to-equity bridge, locked-up cash is typically NOT netted as 'cash' against debt — it is shown separately as 'restricted cash'. (b) DCF: the NWC forecast is unchanged, but reflect it in the net debt adjustment.