Bondholders of Sherritt International Corp. said that a group of what they termed "credible" investors has developed a refinancing plan that rivals a proposal from an ally of U.S. President Donald Trump.
In a statement released Friday, owners of Sherritt's 2031 notes indicated they have examined an "alternative recapitalization proposal" that they argue deserves evaluation alongside the existing bid from Gillon Capital LLC, the Texas family office run by ex-Trump advisor Ray Washburne. They also stated that the alternative plan is supported by strategic and financial investors, though no names were provided nor the submitting party revealed.
"Stakeholders should understand that an organized creditor constituency exists and is prepared to engage, but that engagement has not advanced in a manner consistent with the urgency of the company's circumstances," the bondholder group said.
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Sherritt's long-standing presence in Cuba has made it a target of U.S. geopolitical tensions. The nickel and cobalt facility, one of the largest in the region, is a key source of foreign revenue for the island nation, and its shutdown has strained both the company and the Cuban economy.
Sherritt's difficulties stem from a decades-long presence in Cuba that became precarious under renewed U.S. sanctions. The mine shutdown in February was a direct result of the energy crisis, and the company's efforts to restructure have drawn competing interests. The bondholder group's intervention underscores the urgency of finding a viable path forward for the miner, which has warned it may not survive without a rescue.
Sherritt, headquartered in Toronto, counts among the biggest foreign investors in Cuba. However, the company has faced severe disruption ever since the Trump administration imposed stricter sanctions on Cuba, preventing the island from importing sufficient oil to satisfy demand.
At first, Sherritt began unwinding its partnership with a Cuban state firm and making plans to exit the country, but later announced it had reached a tentative deal to sell a majority interest to Gillon Capital.
Currently, Sherritt and Gillon are engaged in exclusive negotiations; however, the group of 2031 noteholders stated that they "does not believe that the proposed transaction involving Gillon Capital LLC should be viewed as the only available or most executable path forward."
The company issued a warning last month that its status as a going concern was uncertain due to Trump's sanctions directive, explaining that it would lack sufficient cash to pay off its debt if creditors called a default and accelerated repayment.
Besides pushing for a review of the rival plan, the bondholder group said on Friday that it had supplied Sherritt with a term sheet for emergency funding aimed at addressing short-term cash requirements and maintaining operational leeway.
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