A group of investors is stepping in to assist Sherritt International Corp. following the impact of U.S. sanctions on its operations in 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 confirmed that the proposal has been under consideration by the board and is now being publicized to allow shareholders, employees, and other stakeholders to evaluate potential options. If approved, the investors plan to collaborate with Sherritt to stabilize its financial position and liquidity, while safeguarding and enhancing its refinery in Fort Saskatchewan, Alberta, as well as its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed the need for a substantial infusion of capital to support the restart of its Alberta refinery and Cuban joint venture, which had been temporarily closed due to heightened U.S. pressure on Cuba. The company is engaged in discussions with its primary lenders and noteholders to explore a recapitalization strategy aimed at strengthening its financial standing and resuming regular operations when conditions allow.
Earlier, Sherritt had announced the suspension of activities at its Fort Saskatchewan refinery due to the depletion of feed inventory supplied by its Moa mine in Cuba. The company’s joint venture in Cuba had also been halted earlier in the year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.