This is a rush transcript from "On the Record ," June 27, 2007. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, HOST: Twenty-year-old movie star and Paris Hilton pal Lindsay Lohan is in rehab. Meanwhile, Lindsay's father Michael Lohan is fresh out of prison after serving nearly two years for attempted assault and driving while intoxicated.

A short time ago Michael Lohan went "On the Record" about his own troubles, his family, and his relationship with his very famous daughter, Lindsay.

(BEGIN VIDEO CLIP)

VAN SUSTEREN: What was it that went off in your head like "Bingo, I need rehab. I'm going to go get it, and I'm going to succeed."

MICHAEL LOHAN: What went off in my head—it was more like hitting a pole at 80 miles an hour, and, basically, having a near-death experience, and being torn from my family, especially in the way I was. That really woke me up and showed me I had to look within myself, and I really had to, with a very contrite heart, really realize my part of this and accept my responsibility.

VAN SUSTEREN: You mentioned your family. How is your family? Are you in touch with them?

LOHAN: I'm in touch with my minor children. Unfortunately not Lindsay, because she is in the rehab, or my son Michael. But I really pray that things work out. And I feel that the court system is doing just that, they are helping me work it out. It's unfortunate that I have to go through the court system. But no matter what hoops I have to jump through, or what I have to do to be reunited with my children, I will do whatever I have to.

VAN SUSTEREN: When was the last time you talked to Lindsay and what was, sort of, the stated relationship? Was it to have a promise? Did it have a future? Or were you sort of on the ropes with her at that point?

LOHAN: Oh, I spoke to her prior to going to the rehab. But I know what's in my children's heart. And they know — Lindsay, as well as my other children — know how they feel, and I know how they feel.

People have the wrong opinion. There has been a portrait drawn that just wasn't really what it was. We were a very close family. People called us “the Brady Bunch,” and although we did have trial and tribulation in our life, we managed to overcome anything that came our way.

Unfortunately, you know, I handled things in the wrong way. I fell short of the mark.

VAN SUSTEREN: It appears on the outside that Lindsay is in the fast lane. She knows Paris Hilton and some of the young women in Hollywood, and it's almost like she is at high risk in this fast, Hollywood life.

Is she going to slow down, or is there a risk that she is going to have more trouble?

LOHAN: If Lindsay, and I believe Lindsay took her rehabilitation very seriously, and if she gets back to her faith and really rests on the things that she knows are right in her life, basically, that, you know, she has to put her priorities in the right place. Of course, I know that it's going to benefit her and she is going to rebound better than ever.

As long as she surrounds herself with the right people, like she did at the better points of her life. And, again, it's unfortunate, but, you know, when my family and I were torn from each other, things fell apart for everybody, for myself, for Lindsay, and I believe for my other children, which I hope we can reconcile between each other and with God, and get it right.

VAN SUSTEREN: Have you ever met Paris Hilton?

LOHAN: Yes, I have.

VAN SUSTEREN: What do you think?

LOHAN: What do I think?

VAN SUSTEREN: Let me back up for a second. Where did you meet her, and what did you think?

LOHAN: Sure. I met her at a Koi restaurant. The last time I met her was at Koi restaurant with Lindsay. And she was very respectful. She was a nice kid, a really nice kid. She wasn't drinking that night. She was just, you know, she was my daughter's friend, and I looked at it that way, and she truly was a friend at that point in her life. And I have nothing bad to say about her.

VAN SUSTEREN: Do you think she got treated fairly or not?

LOHAN: I'm not one to judge, Greta. I can't judge anybody, and I'm the last one to cast stones. And, if I was, I would be a hypocrite.

You know, the justice system is the justice system. And they do things based on their own reasons. And I'm not one to say if she deserved to go in jail or get house arrest. I have to deal with my own issues and I just hope the best comes out of it for her, her and Lindsay, and anyone else that's in that position.

VAN SUSTEREN: It seems to me, Michael, that you all have one giant chance right now. You can either take it and do well with it, or you can blow it. I mean, you are in the middle of rehab coming out. Lindsay is in rehab. You have got sort of a battle going on, you know, family battle. I mean, this is your moment. Either fix it or, what?

LOHAN: Unfortunately, when people came into my family's life and created insurrection in our life, I handled things in the wrong way. I put my foot down and I stepped on the wrong toes. And then when we were apart, I acted out. And I acted out improperly, and now look. And I realize that.

But it doesn't have to be a battle. This is about forgiveness and loving each other, and just instilling God back in our life like we always had him.

VAN SUSTEREN: And your last conversation with Lindsay gave you a lot of hope that all those things could be repaired? At least vis-a-vis her?

LOHAN: Well, my last conversation with her, she said “I love you, daddy. I'm sorry this is happening. I know Cody wants to be with you.” She said, “I heard you are a minister now.” She said, “Dad, that's kind of retarded, but I respect it.”

She was very contrite and open — she was very open in the conversation, and it was very heart-felt.

VAN SUSTEREN: Well, I wish you luck and your family luck as well. Thank you, Michael.

LOHAN: Thank you so much, Greta. God bless you.

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