A consortium led by undisclosed U.S. investors, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd. has proposed a recapitalization plan to aid Sherritt International Corp. in light of U.S. sanctions impacting its operations in Cuba. The proposal, presented to Sherritt’s board in late June, aims to address the company’s financial challenges and ensure the stability of its Fort Saskatchewan refinery and North American processing facilities for nickel and cobalt.
Sherritt recently disclosed the need for substantial capital to revive its Alberta refinery and Cuban joint venture, which had ceased operations due to heightened U.S. pressure on Cuba. Discussions are ongoing with senior lenders and noteholders to implement a restructuring strategy that will bolster the company’s financial position and resume operations once conditions allow.
The company had previously announced the shutdown of its Fort Saskatchewan refinery following the depletion of feed inventory from its Cuban Moa mine. Operations at the Moa joint venture in Cuba were also temporarily halted earlier this year due to fuel shortages caused by U.S. restrictions on Venezuelan oil exports.
