The Dolan Co., the Minneapolis-based parent company of The Daily Reporter in Milwaukee and the Wisconsin Law Journal, announced today it will file for Chapter 11 bankruptcy protection next week.
The national media company’s stock is publicly traded over the counter with the DOLN ticker symbol.
Under the Chapter 11 process, known as a “pre-packaged bankruptcy,” Dolan said its vendors and other unsecured creditors are expected to be paid in full. The company said it expects to continue providing its products and services across the country, both to its legal services customers and in 19 local publishing markets. Employees will continue to be paid as usual, the company said in a statement.
The bankruptcy petitions are expected to be filed in the U.S. Bankruptcy Court for the District of Delaware. Dolan’s DiscoverReady LLC 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. “The company and its lenders are committed to the customers, employees, and vendors and want to secure a bright future through this process.”
Dolan officials said the plan would allow the company to reorganize its capital structure and reduce its projected secured debt from approximately $170 million to $50 million.
One of Dolan’s subsidiaries, The Daily Reporter Publishing Company Inc., publishes The Daily Reporter and the Wisconsin Law Journal.
Dolan publishes several prominent business publications throughout the nation, including the Maryland Daily Record, the Kansas City Daily Record, New Orleans CityBusiness, Mississippi Business Journal and New York Daily Record.
Dolan said its secured lenders will take ownership of the company once the Chapter 11 process is final. The largest owner is expected to be Bayside Capital, Inc., a subsidiary of HIG Capital, a $15 billion private equity fund that regularly takes ownership interests in businesses.
James P. Dolan, founder of the company and its president, chief executive officer and chairman of the board since it began in 1992, is resigning and will not be part of the restructured company. Scott Pollei, executive vice president and chief operating officer, also is departing.
Dolan said he has formed a new company called Dolan Ventures LLC.
Chief financial officer Vicki Duncomb and general counsel Renee Jackson will remain and assist Nystrom in managing The Dolan Co.
Ann Richmond, vice president and publisher of The Daily Reporter and Wisconsin Law Journal, could not be reached for comment about the impact of the filing on the Milwaukee operations.
