A consortium, led by an undisclosed U.S. anchor investor along with Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian company’s operations in Cuba. The proposal was formally submitted to Sherritt’s board of directors in late June and has been under consideration since then. The consortium has decided to make the announcement public to allow the company’s stakeholders, including shareholders and employees, to evaluate potential alternatives.

If the proposed recapitalization is approved, the consortium aims to collaborate with Sherritt to bolster its financial structure and cash flow while safeguarding and improving its assets, particularly the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America. Sherritt had previously disclosed the need for a substantial infusion of funds to recommence operations at its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba.

The Toronto-headquartered company has been engaged in discussions with its primary lenders and noteholders regarding a restructuring initiative aimed at stabilizing its financial position and resuming regular activities when conditions allow. Earlier, Sherritt had announced the temporary shutdown of its Fort Saskatchewan refinery after depleting the feedstock supply from its Moa mine in Cuba. Operations at the Moa joint venture in Cuba were also paused earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.