Pre-Distress Restructuring: Working Capital Oxygenation, Supply-Chain Contracting, And Equity Preservation

Narrowing options are what turn an ordinary cash-timing gap into a forced equity surrender. The same tools that could close it early become unavailable, one by one, the longer a company waits. This piece traces that sequence through an Indian alcbev company whose 2026 settlement, covering thousands of crores across lenders, suppliers and statutory authorities, cost the founding family a 17.8% equity stake. The pressure had been building for years before formal negotiations began.

When growth used up the cash it was generating

The company had been expanding its core product in its hospitality operations. That expansion required more inventory and left more cash tied up in receivables. Customers were often taking 90 to 120 days to pay, while suppliers and lenders continued to expect payment on much shorter timelines. Suppliers and lenders, meanwhile, still expected to be paid on their usual, much shorter timelines. That gap meant the business could remain viable while still running