A consortium, led by an undisclosed U.S. anchor investor along with Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a non-binding recapitalization plan to Sherritt International Corp. This proposal was submitted to the company’s board of directors in late June and is currently under review. The group has made this announcement to allow Sherritt’s stakeholders to evaluate potential alternatives.
If the recapitalization proposal is approved, the consortium aims to collaborate with Sherritt to strengthen its financial structure and liquidity. Their focus will be on maintaining and improving the operations of Sherritt’s Fort Saskatchewan refinery in 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 its Cuban joint venture. These operations were halted due to increased U.S. sanctions against Cuba, which have impacted Sherritt’s operations significantly.
The company is currently in discussions with its senior lenders and noteholders to explore options for recapitalization that would enhance its financial position and enable a return to normal operations once conditions permit. Sherritt had previously announced the suspension of activities at its Fort Saskatchewan refinery due to the depletion of feed inventory supplied by its Moa mine in Cuba.
Furthermore, operations at Sherritt’s Moa joint venture in Cuba were put on hold earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January. This move by the consortium signifies a potential lifeline for Sherritt International Corp. amid challenging circumstances.