The Dolan Company Amends Bank Agreement, Restructures Florida Unit

The Dolan Company (NYSE: DM), a leading provider of professional services andbusiness information to the legal, financial and real estate sectors in theUnited States, today announced that it has amended its senior lendingagreement, restructured its Florida operations of National Default Exchange,or NDeX, and is commenting on its third quarter results.The company has amended its existing bank agreement with its current lendinggroup to reset its covenant ratios and make certain other changes. “We arepleased with the changes to our bank agreement and the greater flexibility itwill provide to us,” said Vicki Duncomb, chief financial officer. Details ofthis amendment are included in the company's Form 8-K filed today with theSecurities and Exchange Commission.The company also said it has restructured its NDeX Florida operations in orderto provide its proprietary technology to the Albertelli law firm inconsideration for licensing fees and other financial considerations. NDeXreturned existing processing operations to the law firm. Had the restructuringoccurred on January 1, 2012, the company's 2012 annual revenues would havebeen reduced by $10-$12 million but the company's EBITDA from continuingoperations would be increased by at least $1 million. The company said NDeXremains committed to the Florida market.This restructuring is considered a triggering event under GAAP and the companyhas been required to assess whether the goodwill of its NDeX reporting unithas been impaired. Given the current depressed operating results of themortgage default processing industry, the company has determined that certainof the finite-lived intangible assets of NDeX as well as the goodwill havebeen impaired. Accordingly, the company plans to record a non-cash, pre-taxcharge for impairment of these assets of up to $165 million in the thirdquarter. Details regarding the restructuring and impairment charge areincluded in the company's Form 8-K filed today with the Securities andExchange Commission, and the final amount of the impairment is expected to beannounced in connection with third quarter results in early November.