Sherritt International Halts Refinery Operations in Alberta Due to Supply Shortage

📅 3 weeks ago

Sherritt International Corp. has announced the suspension of its refinery operations in Fort Saskatchewan, Alberta, following a depletion of inventory from its Moa mine in Cuba, amid ongoing talks regarding its financial stability.

In a significant operational shift, Sherritt International Corp. has decided to shut down its refinery located in Fort Saskatchewan, Alberta. This decision comes after the company has exhausted the feed inventory sourced from its Moa mine in Cuba. The refinery will remain inactive until mining and processing activities at the Moa site can recommence, along with the necessary reconstruction of the refinery feed pipeline. Earlier this year, operations at Sherritt’s Moa joint venture faced interruptions due to fuel shortages in Cuba, a situation exacerbated by the U.S. imposing restrictions on oil imports from Venezuela starting in January.
The shutdown of the refinery raises concerns about Sherritt's financial position. The company has indicated that it is currently engaged in discussions with its lenders regarding its debt obligations. It has cautioned that if any of its creditors accelerate repayment demands, it might struggle to meet these obligations or repay a substantial portion of its debt. This uncertainty casts a shadow over Sherritt's prospects for refinancing or extending its debt under the prevailing conditions.
In a bid to stabilize its financial situation, Sherritt has entered into a non-binding agreement with Gillon Capital LLC, a family office linked to a former adviser from the Trump administration. This agreement could pave the way for Gillon to acquire a controlling interest in Sherritt. The preliminary arrangement includes a private placement deal that would allow Gillon to secure enough shares to obtain a 55 percent stake in the company.
As Sherritt navigates these challenges, the future of its operations and financial health remains uncertain, particularly with the refinery's shutdown linked to external supply chain issues stemming from its operations in Cuba. The developments signal a critical moment for the company as it attempts to realign its strategic direction amidst ongoing operational hurdles and financial negotiations.

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