A group of investors is extending support to Sherritt International Corp. following the impact of U.S. sanctions on its operations in Cuba. The consortium, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan to Sherritt’s board of directors in late June.
The proposal, currently under consideration by the board, aims to provide a potential lifeline for the company as it navigates through challenging times. The consortium has decided to make this announcement to allow shareholders, employees, and other stakeholders to evaluate the proposed alternatives independently.
If approved, the consortium intends to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently revealed its urgent need for a substantial infusion of capital to resume operations at its Alberta refinery and Cuban joint venture, which were impacted by heightened U.S. pressure on Cuba. The company has been in discussions with its senior lenders and noteholders to explore recapitalization options aimed at stabilizing its financial position and resuming normal business activities.
Earlier, Sherritt had announced the temporary closure of its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Operations at the Moa joint venture in Cuba were also halted earlier this year as the country faced fuel shortages following the U.S. sanctions on Venezuelan oil supply.