A group of investors is offering support to Sherritt International Corp. following challenges caused by U.S. sanctions against Cuba. This support comes from a consortium consisting of an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., who have presented a non-binding recapitalization plan to Sherritt’s board of directors towards the end of June.
The consortium’s proposal has been under consideration by the board since its submission, and the announcement is made now to allow the company’s shareholders, employees, and other stakeholders to evaluate potential options. If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding and improving its Fort Saskatchewan, Alta., refinery, as well as its nickel and cobalt processing capabilities in North America.
Sherritt had previously disclosed the need for a substantial infusion of capital to support the restart of its Alberta refinery and Cuban joint venture, both of which were closed due to increased U.S. pressure on Cuba. The Toronto-based company has been engaged in discussions with its senior lenders and noteholders regarding a recapitalization strategy aimed at stabilizing its financial position and resuming normal operations once conditions allow.
Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery after depleting its feed inventory sourced from the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were also halted earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.