A group of investors has stepped 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 non-binding recapitalization proposal to Sherritt’s board of directors in late June.
The proposal has been under review by the board since then, and the consortium has now made the announcement to allow the company’s stakeholders to evaluate their options. If accepted, the investors plan to collaborate with Sherritt to enhance its financial position and liquidity, with a focus on maintaining and improving its Fort Saskatchewan, Alta., refinery and North American nickel and cobalt processing operations.
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 halted due to increased U.S. pressure on Cuba. The company has been in discussions with its senior lenders and noteholders to restructure its finances and resume normal activities when conditions permit.
Sherritt’s operations at its Moa joint venture in Cuba were halted earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January. This development underscores the company’s efforts to navigate challenging circumstances and secure its long-term operations.