Cash Crunch at Braskem Unit Leaves Creditors Wary Before Payment

Investors are on edge as petrochemical firm Braskem Idesa SAPI’s cash reserves crumble ahead of a looming coupon payment, stoking fears of another corporate meltdown in Latin America.

An earnings report Tuesday showed the firm held just $46 million in cash at the end of September, less than half of what they reported for June. The company has a $33.5 million coupon payment that must be made by Monday.

Even before the latest earnings report, which came as US bond markets were all but closed for Veterans Day, the cash concerns were fueling losses in the debt. Idesa’s bonds ...