A consortium of investors is offering support to Sherritt International Corp. following challenges caused by U.S. sanctions on Cuba. The group, 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 consortium has indicated that the proposal has been under consideration by the board since then. This announcement is made to allow the company’s stakeholders, including shareholders and employees, to evaluate available options. If the proposal is approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity. Additionally, they aim to sustain and improve operations at the Fort Saskatchewan refinery in Alberta and the North American nickel and cobalt processing facilities.
Sherritt previously stated the necessity for a substantial infusion of capital to restart its Alberta refinery and Cuban joint venture, which had been halted due to increased U.S. pressure on Cuba. The company has been engaging in discussions with its senior lenders and noteholders to implement a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities when feasible.
The decision to shut down operations at the Fort Saskatchewan refinery was made after the depletion of feed inventory from the Moa mine in Cuba, which was impacted by the pause in operations at Sherritt’s Moa joint venture in response to fuel shortages in Cuba caused by U.S. sanctions earlier this year.