A group of investors is extending a lifeline to Sherritt International Corp. following challenges caused by U.S. sanctions on Cuba. The consortium, including an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a non-binding recapitalization proposal to Sherritt’s board of directors in late June. The proposal has been under the board’s consideration since then, and the consortium is now publicly disclosing it to allow the company’s stakeholders to evaluate their options.
If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding and advancing its Fort Saskatchewan, Alberta, refinery and its North American nickel and cobalt processing capacity. Sherritt had previously indicated the need for substantial new capital to support the resumption of operations at its Alberta refinery and Cuban joint venture, which were halted due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company has been engaged in discussions with its senior lenders and noteholders to implement a recapitalization strategy aimed at stabilizing its financial position and returning to normal operations when conditions allow. Earlier, Sherritt had announced the closure of its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Operations at the company’s Moa joint venture in Cuba were also suspended earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.