Compass Diversified and its former retail unit, Lugano Diamonds, entered a settlement agreement this month, allowing the Newport Beach jeweler to move through its liquidation process.
“It accelerates the resolution of the Lugano bankruptcy, allowing the estate to move efficiently toward confirmation of a plan of liquidation,” Compass Chairman Larry Enterline said in a statement. “It also enables more timely cash recovery for CODI and reduces the ongoing costs and uncertainty associated with the bankruptcy proceeding.”
Compass Diversified’s claims in the Lugano bankruptcy are now resolved, and the company will support Lugano’s proposed plan of liquidation, Enterline added.
The Westport, Conn.-based company will also be entitled to certain proceeds from the Lugano estate. The jeweler will also exchange a release of claims with Compass.
Compass ended Wednesday’s trading session at $10.15 per share, off 1%, with a market cap of $764 million.
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