Compass Diversified (CODI), the parent of the 5.11, Boa and Primaloft brands, is reporting that its senior secured lender group has extended to November 10, 2025, the due date for CODI to publish its restated financial results for the fiscal years ended December 31, 2022, 2023 and 2024.
CODI reported that it is in active conversations with its senior lender group regarding a formal forbearance extension that will provide additional time to complete the restatement process. This extension is expected to be finalized in the near term.
In late July, the company announced a second forbearance agreement, extending the prior period to October 24, 2025. During this time, CODI’s lenders also increased available funds on the company’s $100 million revolving credit facility from $40 million to $60 million.
CODI stated that it continues to make progress on its investigation into financial and accounting irregularities at its Lugano Holding, Inc. subsidiary and related restatement of historical financial statements. The investigation is reportedly limited to Lugano and does not involve other CODI subsidiaries.
“We are nearing the end of a highly complex restatement process as we unwind a sophisticated financial and accounting fraud perpetrated by Lugano’s founder and former CEO,” said Elias Sabo, CEO of CODI. “As we move closer to completion, our focus remains on maximizing value for our stakeholders and driving strong performance across the rest of our businesses. We appreciate the continued patience and support of all our stakeholders as we bring this process to a close.”
Image courtesy Compass Diversified
