The Minneapolis-based Dolan Co. filed for bankruptcy after the company agreed to be taken over by lenders to cut the debt it had accumulated linked to its former mortgage foreclosure-processing business, according to Bloomberg News.
Dolan’s chief restructuring officer, Kevin Nystrom, reported in a statement on March 20, “This reorganization step is necessary to unlock these current businesses from the weight of debt principally associated with its previous mortgage foreclosure processing businesses.”
The debt listed for the company is reportedly at $185.9 million and the assets of $236.2 million as of Sept. 30, according to the Chapter 11 petition filed in Wilmington, Delaware.
According to Bloomberg Business Week, the company’s other businesses include Counsel Press, which provides appellate services. And its business-information division publishes journals and operates websites for legal and professional audiences. MPRNews reports that, the Dolan company has about 800 employees in 19 markets across the U.S.
According to the March 20 statement, the company founder, James P. Dolan, agreed to step down as chief executive officer after the bankruptcy was filed. It has been reported that CEO, onetime journalist and media-industry investment banker, Jim Dolan, 65, the founder of the company, and Chief Operating Officer Scott Pollei have resigned. The company says it will continue to operate normally.
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