Troubled Swedish mattress manufacturer Hilding Anders International (HA) has hired a new Chief Executive Officer, according to a press release. He will take his post at the beginning of 2020, transitioning with the help of the current CEO. The HA Group is one of the leading bedding and mattress companies globally, operating across the European, Russian and Asian markets.
HA is one of the largest non-performing companies that we track, with $158.7mn of debt and equity invested by FS-KKR Capital (FSK). One debt facility of the several held has been on non-accrual since the IVQ of 2014. More recently – as FSK noted in its most recent Conference Call transcript – another loan was added to three others already not paying their interest. That was notable given the loan’s size: $129mn at cost. FSK has written down its exposure to $75.2mn , a (42%) overall discount.
We don’t know the details of what’s wrong with the far flung business except that FSK referenced “headwinds in raw material input prices as well as competitor online offerings” in that most recent transcript. Nor can we say if the hiring of a new CEO will make a positive or a negative difference, or none at all. We just assume, though, that FSK – with so much at stake and reportedly “working intently” will be taking a great deal of interest given how much is at stake.