Matt Koranda

Lawrence Solow

Matthew Howlett

Robert Dodd

Derek Sommers

Jonathan

Jonathan L.

Lance Vitanza

Randolph Binner

- Compass Diversified Holdings (CODI) entered into a **Forbearance Agreement** with certain holders of its 2029 and 2032 Notes on **August 29, 2025**.  **[1345126_0001345126-25-000050_codi-20250829.htm:0]** **[1345126_0001345126-25-000050_codi-20250829.htm:2]** 
- This agreement addresses potential defaults arising from CODI's previously disclosed non-reliance on its **2022, 2023, and 2024 financial statements** and delayed filing of its Quarterly Report on Form 10-Q for Q1 2025, due to issues at its subsidiary, Lugano Holding, Inc..  **[1345126_0001345126-25-000050_codi-20250829.htm:1]** **[1345126_0001345126-25-000050_codi-20250829.htm:2]** 
- The Forbearance Period is set to expire on the earliest of several conditions, including **October 24, 2025**, providing CODI time to complete the restatement of its financial statements and file its Q1 and Q2 2025 quarterly reports.  **[1345126_0001345126-25-000050_codi-20250829.htm:2]** **[1345126_0001345126-25-000050_exhibit101-seniornotesforb.htm:5]** 
- As consideration for the forbearance, CODI will pay noteholders an upfront fee (either **1.25% or 1.75%** of principal, paid in kind) and additional interest (equivalent to a **5.00% per annum** increase, paid in kind, from August 1, 2025) or a cash fee if supplemental indentures are not finalized.  **[1345126_0001345126-25-000050_codi-20250829.htm:3]** **[1345126_0001345126-25-000050_exhibit101-seniornotesforb.htm:7]**

Compass Diversified Holdings Enters Forbearance Agreement with Noteholders

Compass Diversified (CODI)