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.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CODI:
- Compass Diversified options imply 4.1% move in share price post-earnings
- Compass Diversified options imply 13.1% move in share price post-earnings
- Compass Diversified options imply 3.8% move in share price post-earnings
- Compass Diversified options imply 6.3% move in share price post-earnings
- Compass Diversified Holdings Delays Quarterly Report