A consortium of investors is offering support to Sherritt International Corp. following challenges caused by U.S. sanctions against Cuba. The group, which includes 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 consortium has confirmed that the proposal has been under consideration by the board and is now being disclosed to allow stakeholders, including shareholders and employees, to evaluate potential options. If approved, the investors plan to collaborate with Sherritt to enhance its financial position and operational stability, specifically focusing on its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently announced the necessity of securing a substantial amount of new capital to resume operations at its Alberta refinery and Cuban joint venture, which were temporarily halted due to increased U.S. pressure on Cuba. Discussions with senior lenders and noteholders are ongoing to implement a recapitalization strategy aimed at improving the company’s financial standing and resuming normal activities when feasible.
The decision to close operations at the Fort Saskatchewan refinery was made after the depletion of feed inventory sourced from the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were also impacted by fuel shortages in the country following the U.S. restriction on oil access from Venezuela earlier this year.