The Dolan Company and its subsidiaries announced that it, along with certain of its subsidiaries, has agreed to a comprehensive balance-sheet restructuring with its secured lenders that, among other things, will result in the lenders becoming the owners of the company and its subsidiaries.

To implement the restructuring, the company and certain of its subsidiaries filed voluntary petitions for a prepackaged chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on March 23, 2014.

According to the bankruptcy court documents, as of the petition date, Dolan owed its prepetition lenders $153.5 million under a secured credit agreement encompassing a $155.0 million revolver and a $50.0 million term loan. The lender group is led by Bayside Capital as administrative agent. In its first day motions, Dolan is seeking a court order to access a $10.0 million DIP financing facility with Bayside as agent with lenders: Grace Bay Holdings II, Bayside Dolan, Bank of America and Ellis Lake Master Fund.

The plan of reorganization contemplates that the secured lenders will become the owner of DiscoverReady and The Dolan Company upon the completion of the restructuring process and each business will be operated as separate and distinct entities. Investment funds managed by Bayside Capital will become the majority owner of DiscoverReady and The Dolan Company. Bayside Capital is an affiliate of H.I.G. Capital, a private investment firm with more than $15 billion of equity capital under management.

Minneapolis, MN-based The Dolan Company is a provider of professional services and business information to the legal, financial and real estate sectors. The company’s Professional Services division provides specialized outsourced services to the legal profession primarily through subsidiaries DiscoverReady and Counsel Press. Counsel Press is the nation’s largest provider of appellate services to the legal community. DiscoverReady provides outsourced discovery management and document review services to major companies and law firms. The company’s Business Information division publishes business journals, court and commercial media and other highly focused information products and services, operates web sites and produces events for targeted legal and professional audiences in each of the 19 geographic markets that it serves across the United States.