Magellan Health obtains court approval for disclosure statement; confirmation hearing Oct. 8

By Carlise Newman

Chicago, Aug. 19 - Magellan Health Services Inc. said it has received approval for its disclosure statement from the U.S. Bankruptcy Court for the Southern District of New York.

The bankruptcy court also authorized the company to begin soliciting approval from its creditors for its plan. Magellan plans to begin solicitation on Aug. 29.

The voting deadline is Sept. 30 and the confirmation hearing is Oct. 8.

The plan will result in $150 million of new equity invested in Magellan and a reduction in debt of $500 million.

The plan has the support of the company's unsecured creditors.

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