The Dolan Co. to file for Chapter 11 reorganization

Special to The Freeman

March 20, 2014

MINNEAPOLIS, Minn. – The Dolan Co., the Minneapolis-based owner of Milwaukee’s The Daily Reporter and Wisconsin Law Journal, has filed for Chapter 11 reorganization.

The company will seek bankruptcy protection under Chapter 11 in order to achieve a capital structure that will allow Dolan to grow in the future, the company said in a statement. Under the pre-packaged bankruptcy process, Dolan expects to continue providing its products and services across the country, the statement said.

The bankruptcy petitions are expected to be filed in the U.S. Bankruptcy Court for the District of Delaware. The Dolan Co. subsidiaries will be parties to these petitions, with the exception of its e-discovery business, DiscoverReady LLC, which will continue to operate as usual.

“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, who was named Dolan’s chief restructuring officer in January.

Dolan is seeking approval of the terms of the Chapter 11 reorganization plan from its secured lenders, which should be complete at the end of this week, the statement said. The plan will allow the company to reorganize its capital structure, reducing its projected secured debt from $170 million to approximately $50 million, the statement said.

Once the Chapter 11 process is final, Dolan’s lenders will take ownership of the company.