A group of investors is extending financial support to Sherritt International Corp. following setbacks caused by U.S. sanctions against Cuba. The consortium, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization proposal to Sherritt’s board of directors in late June.
The consortium has disclosed that the proposal has been under consideration by the board since then. The announcement is made to allow the company’s shareholders, employees, and other stakeholders to evaluate potential options independently. If approved, the consortium plans to collaborate with Sherritt to reinforce its financial structure and liquidity while safeguarding and improving its Fort Saskatchewan, Alta., refinery, as well as its North American nickel and cobalt processing capabilities.
Sherritt recently stated the necessity for a substantial infusion of new capital to support the reactivation of its Alberta refinery and Cuban joint venture, which were halted due to heightened U.S. pressure on Cuba. The Toronto-headquartered company has been engaging in discussions with its senior lenders and noteholders to facilitate a recapitalization aimed at stabilizing its financial position and resuming normal activities at an appropriate time.
Earlier, Sherritt announced the suspension of operations at its Fort Saskatchewan refinery after depleting its feed inventory sourced from the Moa mine in Cuba. Operations at the Moa joint venture in Cuba were paused earlier this year as the country encountered fuel shortages following the U.S. embargo on Venezuelan oil supplies in January.