Sherritt Bondholders Push Miner to Weigh Rival Rescue Plan

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Or sign-in if you have an account.(Bloomberg) — Bondholders of troubled miner Sherritt International Corp. said a group of “credible” investors has crafted a plan to refinance the company in a proposal that competes with an offer from an ally of US 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 AccountHolders of Sherritt’s 2031 notes said in a statement Friday they had reviewed an “alternative recapitalization proposal” that they believe should be considered alongside a separate offer from Gillon Capital LLC, the Texas-based family office of former Trump adviser Ray Washburne. The bondholders said the competing proposal was backed by strategic and financial investors, but didn’t identify them or disclose who submitted it.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 again“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.Toronto-based Sherritt is one of Cuba’s largest foreign investors. But the company has been in turmoil since the Trump administration tightened sanctions on Cuba and made it impossible for the country to import enough oil 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 moving to dissolve its joint venture with a Cuban state-owned company and exit the island, Sherritt announced it had struck a preliminary agreement to sell a controlling stake to Gillon Capital.Sherritt and Gillon are now in a period of exclusive talks, but the 2031 bondholder group said it “does not believe that the proposed transaction involving Gillon Capital LLC should be viewed as the only available or most executable path forward.”Last month, the company warned that its ability to continue as a going concern was in doubt because of Trump’s sanctions order, saying it wouldn’t have enough cash to repay its debt if lenders declared a default and demanded early repayment.In addition to advocating for the consideration of the alternative proposal, the bondholders also said Friday they had provided Sherritt with an emergency financing term sheet to meet near-term liquidity needs and preserve operational flexibility.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. 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