A group of investors is extending support to Sherritt International Corp. following challenges caused by U.S. sanctions on Cuba. The consortium, 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. This proposal has been under review by the board since then, and the consortium is now making this announcement to allow the company’s stakeholders to explore available options.
If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity, while safeguarding its Fort Saskatchewan, Alta., refinery and its nickel and cobalt processing capabilities in North America. Sherritt recently disclosed the need for a substantial influx of capital to support the restarting of its Alberta refinery and Cuban joint venture, both of which were impacted by heightened U.S. pressure on Cuba.
Sherritt, headquartered in Toronto, has been in discussions with its senior lenders and noteholders to implement a recapitalization strategy aimed at stabilizing its financial position and resuming regular operations in due course. Earlier, the company had announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Cuban Moa mine. Operations at Sherritt’s Moa joint venture in Cuba were also put on hold earlier this year due to fuel shortages in the country resulting from the U.S. halting oil supplies from Venezuela in January.