A group of investors is stepping in to assist Sherritt International Corp. following challenges caused by U.S. sanctions on Cuba. The consortium, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., have presented a preliminary recapitalization plan to Sherritt’s board of directors in late June.
The consortium has confirmed that the proposal has been under consideration by the board and has decided to make the announcement public to allow the company’s stakeholders to evaluate potential options. If approved, the investors aim to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its Fort Saskatchewan, Alta., refinery and its nickel and cobalt processing capabilities in North America.
In a recent statement, Sherritt disclosed the need for a substantial infusion of fresh capital to support the reopening of its Alberta refinery and Cuban operations, which were halted due to increased U.S. pressure on Cuba. The company is currently engaged in discussions with its key lenders and noteholders to explore a recapitalization strategy that will stabilize its financial position and resume regular activities when conditions permit.
Earlier, Sherritt announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Additionally, activities at Sherritt’s Moa joint venture in Cuba were halted earlier this year due to fuel shortages resulting from the U.S. embargo on Venezuelan oil supplies.
The move by the investor group offers a potential solution to Sherritt’s financial challenges, providing a ray of hope for the company’s future operations amidst the turbulent economic environment.