Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 241

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 241
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 certain covenants under its 2022 Credit Facility. These instances of noncompliance include (i) breaches of financial covenants under the 2022 Credit Facility in historical periods (including December 31, 2024), resulting from required retesting of such covenants in connection with the restatement, (ii) the delivery of the Company’s consolidated financial statements included in this Form 10-K/A with an auditor’s report containing a going concern emphasis-of matter-paragraph, and (iii) prior defaults and events of default resulting from the circumstances related Lugano. As a result, the lenders under the 2022 Credit Facility may elect to exercise the remedies available to them, including but not limited to declaring borrowings due and payable, discontinuing further lending commitments, imposing cash-management controls, and instructing customers to remit payments directly to the administrative agent.

If our borrowings under the 2022 Credit Facility are accelerated and the acceleration is not rescinded, annulled, or otherwise cured within thirty (30) days after the notice of acceleration, the holders of the 2029 Notes and 2032 Notes would have the right to declare the the notes due and payable. Separately, on October 27, 2025, the trustee under the indentures for the 2029 Notes and 2032 Notes delivered a notice that the Company had failed to deliver its consolidated financial statements for the fiscal quarter ending March 31, 2025 by the deadline set under the senior note indenture forbearance agreement then in effect. The Company is currently within a sixty (60) day cure period provided under the indentures, which expires on December 26, 2025. If the Company does not deliver the required financial statements by that date, the holders of the 2029 Notes and 2032 Notes will have the right to declare the notes due and payable.

All prior forbearance agreements under the 2022 Credit Facility and the senior notes indentures have expired, and as of the date of this filing the Company has not obtained any further forbearance, waivers, or other relief. If we are unable to cure the existing breaches or obtain a waiver or forbearance relief before an acceleration occurs, we may not be able to make the required payments or refinance the accelerated obligations on terms acceptable to us, if at all.

Because there can be no assurance that amendments to the Company’s debt instruments or any other relief will be obtained before an acceleration occurs, management has concluded, in