A consortium of investors is stepping in to assist Sherritt International Corp. in the midst of challenges posed 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 revealed that the proposal has been under consideration by the board since then and is now being made public to allow the company’s stakeholders to explore potential options. If approved, the investors plan to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its Fort Saskatchewan, Alberta, refinery and North American nickel and cobalt processing capabilities.
Sherritt previously disclosed the need for a substantial infusion of capital to support the restart of its Alberta refinery and Cuban joint venture, which had been halted 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 position and resuming normal operations in due course.
The temporary closure of operations at the Fort Saskatchewan refinery was triggered by the depletion of feed inventory from the Moa mine in Cuba. Additionally, operations at Sherritt’s Moa joint venture in Cuba were put on hold earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.
