Compass Diversified Extends Forbearance Agreement Amid Subsidiary Investigation

Compass Diversified Holdings (NYSE: CODI) has secured a second forbearance agreement with its lender group, pushing the forbearance deadline to October 24, 2025. This development not only extends the timeline but also boosts the company's access to funds under its $100 million revolving credit facility from $40 million to $60 million during the forbearance period. The initial agreement was reached on May 22, 2025, in response to uncovered financial and accounting discrepancies at Lugano Holdings, Inc., a subsidiary of CODI.

The investigation into Lugano Holdings has so far revealed concerns related to its financing, accounting, and inventory management practices. Despite these challenges, CODI is making steady progress in its efforts to conclude the investigation and implement required financial restatements. It's crucial to highlight that the issues are isolated to Lugano Holdings and do not impact the operations or financial contributions of CODI's eight other subsidiaries.

Elias Sabo, CEO of CODI, has reassured stakeholders of the company's robust liquidity position and the positive, cooperative dynamics with its banking partners and bondholders. The primary objective remains to safeguard and enhance value for all stakeholders as the company moves forward through this corrective phase. For more details on the agreement, visit https://www.compassdiversified.com.