The Ad Hoc Group, representing a significant portion of noteholders, issued a statement on July 17, 2026, disputing the company's portrayal of its ongoing financial negotiations. While Sherritt recently disclosed that it is in active talks regarding its capital structure, the creditors argue that this description overstates the level of engagement. According to the group, they have retained legal and financial advisors and remain prepared to negotiate, yet they have been largely sidelined in favor of a transaction involving Gillon Capital LLC.

Central to the conflict is the company's 120-day exclusivity period with Gillon Capital, which the Ad Hoc Group views as an obstacle to exploring better options. The creditors have formally submitted an alternative recapitalization plan supported by a consortium of strategic and financial participants. They contend that the company’s insistence on a single, non-binding term sheet ignores the necessity of evaluating all credible paths to stability. To address immediate liquidity concerns, the group has also provided a separate emergency financing term sheet, warning that further delays in reaching a comprehensive agreement will only increase the total capital requirements needed to restart operations and preserve the company's long-term value.