Magellan Health's reorganization plan confirmed

By Carlise Newman

Chicago, Oct. 8 - Magellan Health Services Inc. has obtained confirmation of its third amended reorganization plan from the U.S. Bankruptcy Court for the Southern District of New York. Magellan expects to consummate the reorganization during the fourth quarter.

As previously reported, Onex Corp. will be making an equity investment in reorganized Magellan as part of the plan.

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

"We appreciate the strong support our creditors, lenders and new investors have demonstrated for Magellan and our plan of reorganization," said Steven Shulman, chief executive officer.

Columbia, Md.-based Magellan Health is a behavioral managed care organization.

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