A group of investors is stepping in to assist Sherritt International Corp. as the company navigates challenges stemming from 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 plan to Sherritt’s board of directors in late June.
The proposal has been under consideration by the board since its submission, and the consortium has decided to make the announcement public to allow the company’s stakeholders to evaluate the potential options. If approved, the investors aim to collaborate with Sherritt to enhance its financial structure and liquidity, with a focus on maintaining and improving its operations at the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt had previously disclosed the need for a substantial infusion of capital to support the restart of its Alberta refinery and Cuban joint venture, which were forced to halt operations due to increased U.S. pressure on Cuba. The company is in discussions with its senior lenders and noteholders to explore a recapitalization strategy that will strengthen its financial position and enable the resumption of normal activities when conditions allow.
Earlier, Sherritt had announced the temporary closure of its Fort Saskatchewan refinery after depleting its feed supply from the Moa mine in Cuba. Operations at the Moa joint venture in Cuba had also been suspended as the country faced fuel shortages following the U.S. embargo on Venezuelan oil earlier in the year.
