Investor group proposes recapitalization plan for Sherritt amid sanctions

TORONTO - A group of investors is proposing a plan to restructure Sherritt International Corp.'s financing after U.S. sanctions against Cuba impeded the Canadian mining company. The investors, comprising an unnamed U.S. entity, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., submitted a non-binding recapitalization proposal to the company’s board in late June.

The group announced the proposal now to allow shareholders, employees, and other stakeholders to evaluate the deal. If the deal is accepted, the investors plan to collaborate with Sherritt to stabilize its capital structure and liquidity while maintaining and boosting its refinery in Fort Saskatchewan, Alberta, and North American nickel and cobalt processing operations.

Sherritt recently disclosed its need for substantial new capital to restart its Alberta refinery and Cuban joint venture, which were halted due to heightened U.S. pressure on Cuba. The company was also exploring negotiations with senior lenders and noteholders on a recapitalization plan to stabilize its balance sheet and resume normal operations once conditions improve.

The Moa joint venture in Cuba was temporarily suspended in the spring as Cuba faced fuel shortages following the U.S. cessation of oil imports from Venezuela in January.