They basically have 90 days to get their recapitalization plan in place, and another 90 to execute it. If they don't hit those targets they will be in default on their lending facility and you should not expect a lot of patience from creditors at that point.
I had put Mangrove into the PE bucket but looks like maybe they are more in VC investing. Bayside's description though:
A $4.5 billion special situations platform investing in companies with distressed or over-leveraged balance sheets through a variety of investments including equity infusions; secondary market purchases of debt throughout the capital structure; out of court restructurings, turnarounds and bankruptcies; debtor in possession (DIP) financings and special situations lending
Yes, but it reminds me of a bank run. People know the bank has cash, but they also know the bank will fail if everyone wants their money at the same time. So when they see a line forming, everyone hops in since nobody wants to hold the bag. So it becomes a self-fulfilling prophesy. Dolan needs to keep all of the customers happy since if it appears that customers are lining up to close their accounts, they all might.
They'll need to act quickly on the capital side of things. Interesting if you google the analysts on the call. Several were from firms that specialize in private equity, special situation restructurings, etc.
I think what freaked everyone out was the revelation that their biggest customer at discover ready cut business due to dolan's financial state. That's a legitimate concern, and could spread. Not good to outsource a big contract and have the contractee fail midway through.
CLGX and LPS capitalization is 2X revenues approximately. Dolans default processing unit generated 5M in the most recent quarter ending June 2013. It's at depressed levels but they've sold a chunk already. But 5M x 4 x 2 = $40M. So they'll probably have to do something beyond selling the unit I think.