Glencore Consortium Offers Rival Bid for Troubled Canadian Miner

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessGlencore Consortium Offers Rival Bid for Troubled Canadian MinerA 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 US President Donald Trump.Author of the article:Last updated 38 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.The open-pit nickel mine, owned by Sherritt International Corp., in Moa, Cuba. Photo by Sven Creutzmann/Mambo Photo /Photographer: Sven Creutzmann/MaA 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 U.S. President Donald Trump.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe 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 $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.Get the latest headlines, breaking news and columns.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 Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe 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.Toronto-based Sherritt is one of Cuba’s largest foreign investors. The company has been in turmoil since the Trump administration tightened sanctions on Cuba, compounding an energy crisis that has left the island nation struggling to import enough fuel to meet its needs.Sherritt halted production at its nickel and cobalt mine in eastern Cuba in February because of the energy crisis. After initially seeking to dissolve its joint venture with a Cuban state-owned company and exit the island, Sherritt announced that it had struck a preliminary agreement to sell a controlling stake to Gillon.The consortium said its non-binding proposal is fully funded through equity commitments and would support Sherritt’s nickel and cobalt operations, including its Fort Saskatchewan refinery.Last month, Sherritt warned that its ability to continue as a going concern was in doubt, saying it wouldn’t have enough cash to meet its obligations if lenders declared a default and demanded early repayment.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.