A consortium of investors is stepping in to assist Sherritt International Corp. following challenges caused by U.S. sanctions against 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 confirmed that the proposal has been under consideration by the board and is now being publicly announced to allow the company’s stakeholders to evaluate potential options. If approved, the investors plan to collaborate with Sherritt to strengthen its financial position and ensure the continuity of its operations, particularly at its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing facilities in North America.
Sherritt recently disclosed the need for a substantial infusion of new funds to support the restart of its Alberta refinery and Cuban joint venture, which were forced to close due to increased U.S. pressure on Cuba. The company is currently engaged in discussions with its senior lenders and noteholders to implement a recapitalization strategy aimed at stabilizing its financial health and resuming normal activities as conditions allow.
Earlier this year, Sherritt had to suspend operations at its Moa joint venture in Cuba due to fuel shortages caused by the U.S. sanctions that restricted access to Venezuelan oil. This move followed the company’s decision to halt operations at its Fort Saskatchewan refinery after depleting the feed inventory supplied by the Moa mine in Cuba.
