A consortium led by an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd. has extended a potential financial rescue offer to Sherritt International Corp., which has faced challenges due to U.S. sanctions against Cuba. The consortium presented a preliminary recapitalization plan to Sherritt’s board of directors in late June, which is currently under consideration. The consortium’s aim is to collaborate with Sherritt to enhance its financial stability and liquidity while safeguarding and improving its operations at the Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capabilities.
Sherritt recently disclosed the need for a substantial infusion of fresh capital to support the resumption of operations at its Alberta refinery and Cuban joint venture, both of which were halted in response to heightened U.S. pressure on Cuba. The company is in discussions with its primary lenders and noteholders to explore a recapitalization strategy aimed at restoring its financial health and returning to normal business operations at an appropriate time.
Earlier this year, Sherritt suspended activities at its Moa joint venture in Cuba due to fuel shortages caused by the U.S. blockade of Venezuelan oil supplies in January. The company had previously announced the closure of its Fort Saskatchewan refinery after depleting its feed inventory sourced from the Moa mine in Cuba. This move comes amidst an expansion of U.S. sanctions on Cuba, impacting Sherritt’s operations in the region.