Sherritt International has announced a comprehensive debt restructuring through a CBCA (Canada Business Corporations Act) transaction to extend note maturities to November 2031 and reduce outstanding debt by up to $32 million. This involves exchanging existing 8.50 percent Senior Secured Notes (2026) and 10.75 percent Junior Notes (2029) for new 9.25 percent Senior Secured Notes (2031), with incentives for early consent. Backed by holders of 42 percent of senior notes, the plan also includes a Subsequent Exchange Transaction where $45 million of amended notes will be exchanged for up to 19.9 percent of Sherritt’s shares.

The strategy aims to enhance liquidity, lower annual interest costs, and extend debt timelines amid falling nickel and cobalt prices. Sherritt will retain full operations and obligations to employees and suppliers. Key steps include Moa Joint Venture expansions, Energas optimizations, and a cobalt swap with Cuba to recover receivables. The CBCA Plan requires 66 percent approval at noteholder meetings on April 4, 2025, with court approval to follow. If completed, it will materially strengthen Sherritt’s capital structure and position it for future growth, with additional provisions for a back-up plan if junior noteholders opt out of the CBCA process. The company’s board unanimously supports both the CBCA and subsequent exchange transactions.

Sherritt's legal advisor in connection with the CBCA transaction and subsequent exchange transaction is Goodmans LLP and its financial advisor is National Bank Financial Inc. The initial consenting noteholders’ legal advisor is Bennett Jones LLP.