Magellan Behavioral Health Closer to Emerging from Bankruptcy

A bankruptcy judge approved a financing deal this past week that will allow Magellan Behavioral Health, the largest managed behavioral health corporation in the U.S., to emerge from bankruptcy later this year. Magellan provides mental health and employee-assistance treatment for about 65 million people. It filed for bankruptcy protection in March.

The recently-approved financing deal allows a Toronto investment company to invest as much as $150 million in Magellan. The mental health insurer reports that it employs 4,900 persons nationally, down from 5,200 in March of this year.

More information is available (registration required) in this SunSpot.net article: Chapter 11 judge OKs Magellan financing