A group of investors is extending support to Sherritt International Corp. following the impact of U.S. sanctions on its operations in Cuba. The consortium, which includes an undisclosed major U.S. 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 indicated that the proposal has been under consideration by the board since then, and they are making the announcement now to allow the company’s stakeholders to evaluate the available options. If the proposal is approved, the investors plan to collaborate with Sherritt to strengthen its financial structure and liquidity, while safeguarding and improving its assets, including the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed its need for a substantial infusion of capital to resume operations at its Alberta refinery and Cuban joint venture, which were forced to halt due to heightened U.S. pressure on Cuba. The company stated that discussions were ongoing with its key lenders and noteholders to execute a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities once conditions permit.
Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery after exhausting its feed inventory supply from the Moa mine in Cuba. The company’s operations at the Moa joint venture in Cuba had been paused earlier in the year due to fuel shortages in the country following the U.S. sanctions on oil imports from Venezuela.
