The Dolan Company and its subsidiaries announced that the United States Bankruptcy Court for the District of Delaware has confirmed their prepackaged chapter 11 plan of reorganization. Confirmation of the plan of reorganization is a critical step toward the company’s emergence from bankruptcy, which the company anticipates will occur later this week.

Under the plan of reorganization, the company’s secured lenders will become the owner of The Dolan Company and The Dolan Company’s e-discovery business, DiscoverReady, each of which will be operated as separate and distinct entities. Investment funds managed by Bayside Capital will be the majority owner.

The confirmed plan of reorganization will allow the filing subsidiaries of the company to deleverage their capital structure by reducing their projected secured debt obligations by over $100 million to approximately $50 million.

In transactions related to the plan, the company’s secured lenders will refinance DiscoverReady’s capital structure with a $10 million unfunded secured revolving facility.

Previously on abfjournal: Dolan Files Prepack Chapter 11; Owes Bayside Group $153.5MM, March 25, 2014