Glencore Consortium Challenges Gillon Capital for Sherritt International Control

A consortium led by Glencore Plc is attempting to seize control of Sherritt International Corp., a Canadian nickel and cobalt producer facing severe financial distress. The consortium, which includes anchor investor Albert Huddleston and creditor Kyma Capital Ltd., has submitted a non-binding proposal to provide fresh capital in exchange for at least 55% of the company.

Sherritt is currently engaged in exclusive rescue talks with Gillon Capital LLC, the family office of Ray Washburne. To disrupt this arrangement, Kyma Capital has filed a challenge in the Ontario Superior Court of Justice. The lawsuit seeks to force a shareholder vote and replace Chairman Peter Hancock before the exclusivity period with Gillon Capital expires in October.

The struggle for control follows a collapse in Sherritt's operations triggered by a May executive order from the U.S. president that expanded sanctions on companies operating in Cuba. These sanctions, coupled with a Cuban energy crisis, forced Sherritt to pause production at its Cuban mine and idle its refinery in Alberta. The company has warned that its ability to continue as a going concern is now in doubt.