A consortium of investors is stepping in to assist Sherritt International Corp. following challenges caused by 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 then, and the consortium is now making the announcement to allow the company’s stakeholders to evaluate their options. If the deal goes through, the consortium aims to collaborate with Sherritt to strengthen its financial structure and liquidity, as well as maintain and improve its Fort Saskatchewan, Alta., refinery and North American nickel and cobalt processing capacities.
Sherritt recently disclosed the need for a substantial infusion of new funds to support the restart of its Alberta refinery and Cuban joint venture, which had been halted due to increased U.S. pressure on Cuba. The Toronto-headquartered company is engaged in discussions with its principal lenders and noteholders to implement a recapitalization strategy that will enhance its financial position and resume operations once conditions allow.
Previously, Sherritt announced the suspension of operations at its Fort Saskatchewan refinery after depleting its feed supply from the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were also paused earlier this year due to fuel shortages in the country following the U.S. sanctions on Venezuela’s oil supply.
This move by the consortium marks a potential turning point for Sherritt International Corp. as it navigates the challenges posed by the geopolitical landscape and seeks to secure its operations and financial stability.
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