In brief, Dolan's a cross between The Daily Journal and Epiq Systems, but levered. It has mostly disposed of its unattractive operating units and is now in a position to generate somewhere between $23 and $25 million in free cash flow. There are covenant issues and management is in the process of negotiating these with its lenders.
Disclosure: I own a piece of DM
Update: November 8, 2013
I'm out of DM. This development adds an element of risk that I'm not comfortable with. (I no longer feel as though I have grasped the entirety of the narrative; that's the worst kind of risk to take on). There are other, clearer opportunities with similar upsides. Next week's quarterly conference call should provide clarity on the company's plans for raising the $50m.