Sherritt International has been running on fumes for months. Now two rescue plans are fighting over who gets to refill the tank.
A Glencore-led consortium says it handed its proposal to Sherritt's directors on June 26. The deal is non-binding, and investors would finance it entirely with equity pledges - meaning they put up cash instead of taking on new debt.
The group includes Glencore, Kyma Capital, Trifon Natsis, and a U.S. anchor investor whose name has not been disclosed. If the plan goes through, the consortium would hold at least 55% of the company once all the share dilution is counted - meaning after the new shares are issued.
Eligible existing investors could subscribe for new shares priced at C$0.12 each. That cash would keep Sherritt's nickel and cobalt operations running, including the Fort Saskatchewan refinery.
It would also give the company a path forward that does not involve handing control to an outside investor.
Toronto-headquartered Sherritt ranks among Cuba's biggest foreign investors. That used to be a selling point.
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That changed when the Trump administration tightened restrictions on Cuba, and an energy crisis made it hard for the island to get enough fuel.
In February, the miner suspended operations at its nickel and cobalt site in eastern Cuba because of the energy crisis. Sherritt initially attempted to dissolve its partnership with a Cuban state-owned company and leave the island entirely, but those plans fell through.
Then, in May, it announced a preliminary deal that would give Gillon Capital a 55% controlling stake.
Gillon is a Texas-based family investment office tied to Ray Washburne, a former adviser to President Trump. One detail stands out: Sherritt has not disclosed the price Gillon would pay for its stake.
The Gillon plan has not won everyone over. Kyma Capital, Sherritt's largest shareholder, said in July it would call a special meeting to remove Chairman Peter Hancock and one other director, arguing that the company needs different leadership.
That meeting would force the board to defend its leadership choices at the same time it is picking between two rescue plans.
Sherritt's negotiations with Gillon are being closely watched by bondholders and investors. A committee of the company's bondholders published those same terms a week before the consortium presented its plan to the board.
In July, those creditors said they were reviewing the alternative rescue plan put forward by unnamed strategic and financial investors. Sherritt also warned that month that there was substantial uncertainty about whether it could continue as a going concern - meaning whether it can keep operating at all.
It said it would run short of cash to cover its debts if creditors declared a default and demanded immediate repayment.
So what does this fight actually mean for someone holding the stock? It comes down to which plan wins.
For investors, the next few months decide whether Sherritt survives and what is left for the people who own it. The boardroom fight is not just corporate drama.
It is the difference between a lifeline that keeps the mines running and a company that runs out of cash. For shareholders who qualify, the C$0.12 price is the cost of staying in the game.
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