Last month, Sherritt warned that its ability to continue in Cuba as a going concern was in doubt
You can save this article by registering for free here. Or sign-in if you have an account.
A consortium including Glencore PLC proposed a rescue deal for troubled Canadian miner Sherritt International Corp., offering a potential alternative to an earlier plan from an ally of United States President Donald Trump.
Create an account or sign in to continue with your reading experience.
Create an account or sign in to continue with your reading experience.
The latest proposal to be disclosed would provide Sherritt with fresh capital and leave the consortium owning at least 55 per cent of the company on a fully diluted basis, according to a Monday statement.
Eligible existing shareholders would have the right to buy newly issued stock at US$0.12 a share. A proposed private placement with Gillon Capital announced in May would give the Texas-based family office of former Trump adviser Ray Washburne a controlling 55 per cent stake, though Sherritt hasn’t disclosed the price at which Gillon would acquire its shares.
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
A welcome email is on its way. If you don't see it, please check your junk folder.
The next issue of FP West: Energy Insider will soon be in your inbox.
We encountered an issue signing you up. Please try again
Interested in more newsletters? Browse here.
The Glencore consortium’s proposal is the same plan whose terms were disclosed last week by an ad hoc group of Sherritt bondholders. The creditors said in July that they were evaluating the alternative recapitalization proposal, which had been submitted by unidentified strategic and financial investors.
The consortium, which includes an unnamed U.S. anchor investor, Trifon Natsis, Kyma Capital Ltd. and Glencore, said Monday that it submitted the plan to Sherritt’s board on June 26.
Sherritt’s talks with Gillon have drawn scrutiny from holders of the company’s bonds and its investors. Kyma, Sherritt’s largest shareholder, said last month that it would call a special shareholder meeting to seek the removal of chairman Peter Hancock and another director, arguing the company needs new leadership.