Trapped cash
From ACT Wiki
Cash to which access is limited, particularly in the case of non-domestic subsidiaries and joint ventures.
Cash can be trapped by exchange controls, tax, accounting, legal and lender restrictions.
Depreciation of fixed assets reduces the distributable profit, thereby increasing trapped cash balances, especially acute in project companies with a finite life.
Bank cover ratios and tax laws which prohibit full distribution have a similar cash-trapping effect.
