Compass Diversified Enters Forbearance Agreement, Cuts Management Fees, Suspends Quarterly Dividend, And Receives NYSE Late Filing Notice Amid Investigation Into Financial Irregularities At Subsidiary Lugano Holding

Author: Benzinga Newsdesk | May 27, 2025 03:12pm

Entered into Forbearance Agreement with Lender Group

Reduced Management Fees

Suspended Quarterly Distribution on Common Shares

Received Notice of Late Filing from NYSE

WESTPORT, Conn., May 27, 2025 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE:CODI) ("CODI") today provided an update on steps it is taking to enhance liquidity and reduce costs in the wake of its announcement that it is investigating, and has preliminarily identified irregularities in, the financing, accounting, and inventory practices at its subsidiary, Lugano Holding, Inc. ("Lugano").

CODI has taken the following actions:

• Entered into a forbearance agreement with its lender group to preserve sufficient liquidity to maintain normal operations.
• Significantly reduced management fees paid by CODI.
• Restricted investment in Lugano, focusing resources on CODI's eight other market leading subsidiaries.
• Suspended the quarterly cash distribution historically paid to common shareholders in order to preserve cash and protect long-term value.

Posted In: CODI