A group of investors is stepping 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 since late June.
The consortium has revealed the proposal to allow the company’s stakeholders to evaluate potential alternatives. If approved, the investors aim to collaborate with Sherritt to strengthen its financial position and liquidity while safeguarding and improving its operations in Fort Saskatchewan, Alberta, as well as its North American nickel and cobalt processing capacity.
Sherritt had previously stated the need for a significant infusion of capital to restart its Alberta refinery and Cuban joint venture, both of which were halted due to increased U.S. pressure on Cuba. The company has been in discussions with its senior lenders and noteholders to implement a recapitalization strategy to stabilize its financial health and resume normal activities when conditions permit.
The closure of operations at Sherritt’s Fort Saskatchewan refinery was announced after depleting its feed inventory from the Moa mine in Cuba. Operations at the Moa joint venture in Cuba were also paused earlier this year due to fuel shortages in the country following the U.S. restrictions on Venezuelan oil access.