A consortium 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. following the challenges posed by U.S. sanctions against Cuba. The proposal, submitted to Sherritt’s board in late June, aims to bolster the company’s financial standing and operational capacity.
The consortium has confirmed that the proposal has been under consideration by the board and has now been made public to allow shareholders, employees, and stakeholders to evaluate potential alternatives. If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure, ensure liquidity, and safeguard its assets, including the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed the urgent need for substantial new capital to resume operations at its Alberta refinery and Cuban joint venture, both of which were impacted by increased U.S. pressure on Cuba. The company is engaged in discussions with its senior lenders and noteholders to pursue a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities when conditions permit.
Earlier, Sherritt had announced the temporary closure of its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Operations at the Moa joint venture in Cuba were also halted earlier this year in response to fuel shortages resulting from the U.S. sanctions that disrupted oil supplies from Venezuela.
By taking these steps, Sherritt aims to navigate the challenges posed by the sanctions and secure its operations for the future.