Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

The Dolan Company Chapter 11 Petition, Plan Filed

The Dolan Company and more than 20 of its subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-10614. The Company, which provides professional services and business information to the legal, financial and real estate sectors, is represented by Laura Davis Jones of Pachulski Stang Ziehl & Jones. Dolan’s e-discovery business, DiscoverReady, is not included in the Chapter 11 proceedings. According to the Company, the Chapter 11 process will allow it to deleverage its capital structure by reducing projected secured debt obligations from approximately $170 million to approximately $50 million. The restructuring support agreement also secures lender support from to refinance DiscoverReady’s capital structure with a $10 million unfunded secured revolving facility. Under the restructuring, existing preferred and common shares will be cancelled and will not receive a recovery under a Joint Prepackaged Plan of Reorganization and related Disclosure Statement, concurrently filed with the Court and dated March 18, 2014. The Plan contemplates that the Company’s secured lenders will become the owner of DiscoverReady and The Dolan Company upon completion of the restructuring process, and each business will be operated as separate and distinct entities. Investment funds managed by Bayside Capital, Inc. will become the majority owner of both DiscoverReady and The Dolan Company. The Company’s lenders are expected to provide a $10 million debtor-in-possession loan to fund the cash needs of the Company and DiscoverReady through the reorganization process. “The Company remains well positioned in its core markets. This reorganization step is necessary to unlock these current businesses from the weight of debt principally associated with its previous mortgage foreclosure processing businesses,” said Kevin Nystrom, Dolan’s chief restructuring officer. In connection with this process, James P. Dolan, the Company’s founder and chief executive officer, and Scott Pollei, the Company’s long-time chief operating officer, have resigned their positions with the Company. Dolan’s chief financial officer, Vicki Duncomb, and general counsel, Renee Jackson, will remain in their leadership positions and will assist chief restructuring officer Nystrom in managing the Company’s operations.

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