A consortium of investors has extended support to Sherritt International Corp. following the impact of U.S. sanctions on its operations in Cuba. The consortium, led by an undisclosed U.S. anchor investor along with Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has proposed a non-binding recapitalization plan to Sherritt’s board of directors in late June.
The proposal, currently under review by the board, aims to offer a financial lifeline to Sherritt. The investors are making this announcement to allow the company’s stakeholders to evaluate their options. If approved, the consortium plans to collaborate with Sherritt to strengthen its financial position, maintain its refinery in Fort Saskatchewan, Alberta, and sustain its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed the need for a substantial infusion of capital to relaunch its Alberta refinery and Cuban joint venture, both of which were forced to halt operations due to increased U.S. pressure on Cuba. Discussions are underway with senior lenders and noteholders to restructure the company’s finances and resume normal activities when conditions permit.
The company had previously halted operations at its Fort Saskatchewan refinery due to depleting feed inventory from the Moa mine in Cuba. Operations at Sherritt’s Cuban joint venture were also paused earlier this year amidst fuel shortages in the country following U.S. restrictions on oil imports from Venezuela.
