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 non-binding recapitalization plan to Sherritt’s board of directors in late June.
The proposal has been under consideration by the board and is now being made public to allow stakeholders to evaluate their options. If approved, the investors aim to collaborate with Sherritt to improve its financial structure and liquidity, with a focus on maintaining and enhancing its Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capacity.
Sherritt recently disclosed the need for a substantial infusion of capital to restart operations at its Alberta refinery and Cuban joint venture, which were impacted by heightened U.S. pressure on Cuba. The company is in discussions with its senior lenders and noteholders to implement a recapitalization strategy that would stabilize its financial position and resume regular activities when conditions allow.
Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. The company’s joint venture in Cuba was also put on hold as the country grappled with fuel shortages following the U.S. embargo on Venezuelan oil in January.