A group of investors has stepped in to assist 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.
The proposal has been under review by the board since then, with the consortium now making the announcement to allow shareholders, employees, and other stakeholders to evaluate available options. If approved, the consortium plans to collaborate with Sherritt to strengthen its financial position and liquidity while safeguarding and enhancing its operations in Fort Saskatchewan, Alberta, as well as its nickel and cobalt processing capabilities in North America.
Sherritt previously disclosed the need for a substantial infusion of capital to support the restart of its Alberta refinery and Cuban joint venture, which were forced to halt operations due to increased U.S. pressure on Cuba. The company is engaged in discussions with its senior lenders and noteholders regarding a recapitalization strategy aimed at stabilizing its financial structure and resuming regular activities when conditions permit.
The decision to suspend operations at the Fort Saskatchewan refinery came after the depletion of feed inventory from the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were also halted earlier this year as the country grappled with fuel shortages following the U.S. restriction on oil access from Venezuela in January.