A consortium led by an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd. has proposed a financial restructuring plan to assist Sherritt International Corp. in overcoming challenges caused by U.S. sanctions against Cuba. The non-binding recapitalization proposal was presented to Sherritt’s board of directors in late June and has been under consideration since then.

The consortium aims to collaborate with Sherritt in stabilizing its financial position and liquidity, with a focus on maintaining and enhancing its operations at the Fort Saskatchewan refinery in Alberta, as well as its nickel and cobalt processing capabilities in North America. Sherritt had previously disclosed the need for a substantial infusion of capital to support the resumption of operations at its Alberta refinery and Cuban joint venture, which had been impacted by increased pressure from the U.S. government on Cuba.

Sherritt had halted 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 had also experienced disruptions earlier in the year due to fuel shortages resulting from U.S. restrictions on oil imports from Venezuela.

The Toronto-based company had been in discussions with its senior lenders and noteholders to explore recapitalization options aimed at improving its financial position and returning to normal business operations when feasible. The consortium’s proposal offers a potential path forward for Sherritt as it navigates the challenges posed by the geopolitical environment and seeks to ensure the sustainability of its operations.