The Dolan Company files prepackaged Chapter 11
The Dolan Company announced that it will file a prepackaged chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Not part of the filing is the company’s e-discovery business, DiscoverReady LLC.
James P. Dolan, the company’s founder and CEO, and COO Scott Pollei, have resigned from the company. CFO Vicki Duncomb and General Counsel Renee Jackson will remain with the company in their current positions.
The Dolan Company’s Business Information Division publishes such titles as the Daily Journal of Commerce (Portland, Ore.) and Lawyers Weekly. The company’s Professional Services Division includes National Default Exchange, Counsel Press LLC and DiscoverReady LLC.
“The chapter 11 plan process will allow the filing subsidiaries of the Company to deleverage its capital structure by reducing its projected secured debt obligations from approximately $170 million to approximately $50 million,” the company said in its announcement. “The restructuring support agreement also secures support from the lenders to refinance DiscoverReady’s capital structure with a $10 million unfunded secured revolving facility.”
At the conclusion of the bankruptcy, the company said that both The Dolan Company and DiscoverReady LLC will be run as privately held companies.
“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, the Company’s chief restructuring officer. “The Company and its lenders are committed to the customers, employees, and vendors and want to secure a bright future through this process,” he said.
The company said they expect to exit from bankruptcy within two months.