Compass Diversified enter forbearance agreement amid Lugano investigation

Compass Diversified (CODI) 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. Compass Diversified 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 Compass Diversified; restricted investment in Lugano and suspended the quarterly cash distribution historically paid to common shareholders in order to preserve cash.