A consortium, led by an undisclosed U.S. anchor investor along with Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has extended a potential financial lifeline to Sherritt International Corp. in response to the challenges posed by U.S. sanctions on Cuba. The group presented a non-binding recapitalization proposal to Sherritt’s board of directors in late June, aiming to address the company’s current financial difficulties.
The consortium has confirmed that the proposal has been under consideration by the board since its submission and is now being publicly disclosed to allow shareholders, employees, and other stakeholders the opportunity to evaluate available options. If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding and improving its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt had previously announced the need for a substantial infusion of new capital to support the reopening of its Alberta refinery and Cuban joint venture, both of which had to be closed due to heightened U.S. pressure on Cuba. The Toronto-headquartered company had been in discussions with its senior lenders and noteholders regarding a recapitalization strategy aimed at stabilizing its financial position and resuming normal operations when feasible.
The company had ceased operations at its Fort Saskatchewan refinery after depleting the feed inventory supplied by its Moa mine in Cuba. Furthermore, operations at Sherritt’s Moa joint venture in Cuba were halted earlier this year as a result of fuel shortages in the country following the U.S. restriction on Venezuelan oil access in January.