A set of investors is offering support to Sherritt International Corp. following challenges posed by U.S. sanctions against Cuba. The consortium, led by an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., presented a preliminary recapitalization plan to Sherritt’s board in late June. The proposal has been under review by the board since then, and its disclosure aims to enable shareholders, employees, and stakeholders to evaluate potential options.
If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity, while safeguarding and improving its facilities in Fort Saskatchewan, Alberta, and its nickel and cobalt processing capacity in North America. Sherritt recently disclosed the necessity of a substantial infusion of new funds to restart operations at its Alberta refinery and Cuban joint venture, which were halted due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company has been engaged in discussions with its primary lenders and noteholders to execute a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities when conditions allow. Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were also put on hold earlier this year due to fuel shortages in the country resulting from the U.S. oil embargo on Venezuela in January.