Compass Diversified (CODI) entered into a Settlement Agreement and a Plan Support Agreement on June 24, 2026, with Lugano Diamonds & Jewelry Inc. regarding its Chapter 11 bankruptcy case. The agreement resolves all claims against CODI and its affiliates related to the bankruptcy and establishes a framework for CODI's recovery from the Lugano estate.
Key Details
- Terms of Recovery: In exchange for supporting Lugano's Plan of Liquidation, CODI is entitled to receive 34.79% of net proceeds from Lugano's inventory, tax refunds, and insurance policies, plus 45% and 25% from specific liquidation trust litigation claims.
- Release of Claims: The agreement provides for a full release of all claims that could be asserted against CODI and its related parties by or on behalf of Lugano or its bankruptcy estate.
- Contingency: The settlement is subject to creditor approval and bankruptcy court confirmation of Lugano's Plan of Liquidation and is not binding until the plan's effective date.