A consortium of investors, led by an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a non-binding recapitalization proposal to Sherritt International Corp. in response to the challenges posed by U.S. sanctions on Cuba. The proposal, submitted to Sherritt’s board of directors in late June, aims to stabilize the company’s capital structure and liquidity while safeguarding its Fort Saskatchewan, Alberta refinery, and North American nickel and cobalt processing capabilities.
Sherritt recently disclosed the need for a substantial infusion of new capital to support the restart of its Alberta refinery and Cuban joint venture, both of which were temporarily shut down due to increased U.S. pressure on Cuba. The company is engaged in discussions with its senior lenders and noteholders to explore a recapitalization strategy that will restore normal operations once conditions allow.
Earlier, Sherritt announced the suspension of operations at its Fort Saskatchewan refinery following the depletion of feed inventory supplied by the Moa mine in Cuba. The company’s Moa joint venture in Cuba also faced interruptions earlier this year amid fuel shortages in the country resulting from the U.S. embargo on Venezuelan oil imports.
The consortium’s proposal is currently under review by Sherritt’s board, and the announcement aims to provide transparency to shareholders, employees, and stakeholders as they consider potential alternatives for the company’s future.