Compass Diversified announces second forbearance agreement

Compass Diversified (CODI) announced that on July 25 the Company and its lender group entered into a second forbearance agreement, extending the prior forbearance period until October 24. CODI’s lenders have further increased the amount of availability on the Company’s $100M revolving credit facility, increasing it from $40M to $60M during the forbearance period.CODI originally entered into a forbearance agreement with its lenders on May 22, 2025 in the wake of CODI’s investigation into financial and accounting irregularities at its subsidiary, Lugano Holdings. The investigation has preliminarily identified irregularities in Lugano’s financing, accounting, and inventory practices.