Hilding Anders to restructure debt with swap deal

Investment firm KKR is understood to offer creditors of Swedish mattress manufacturing group, Hilding Anders, a swap deal as part of a new restructure.

According to documents prepared for a London court hearing, KKR is to hand over ownership of Hilding Anders International AB, owners of the Carpe Diem Beds and Jensen brands, to creditors as part of a debt restructure.

This restructuring deal will see a group of Hilding Anders’ creditors swap part of their debt for equity, which is estimated to inject a cash boost of around €20m.

This also marks the second restructure KKR has implemented in less than a year following financial difficulties relating to the Russian war on Ukraine. Hilding Anders owns a 73% stake in Russian bed manufacturer Askona Group.

The document states that Hilding Anders had €300m of term loans and €273m of bonds ahead of this round of restructuring, with the notes to be converted into a 100% equity stake. The term loans will remain as they are.

The hearing is expected to take place on 12 July 2023 following a meeting with creditors on 10 July. It is also understood that creditors holding approximately 90% of the term loans and the notes have already signed a lock-up agreement with Hilding Anders.

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