NYSE Moves To Delist Magellan

By Staff Writer

October 08, 2002 at 08:00 PM

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NU Online News Service, Oct. 8, 8:53 p.m. – The New York Stock Exchange has started procedures to remove the stock of Magellan Health Services Inc., Columbia, Md., from the NYSE trading list.

Magellan no longer has a high enough stock price or market capitalization to qualify for an NYSE listing, Magellan says.

Magellan, a company that manages mental health care and substance abuse treatment for one-quarter of all U.S. residents, says its stock will now trade on the Over-The-Counter Bulletin Board market.

Magellan recently warned that it might have trouble complying with a financial covenant in a bank credit agreement.

As long as the lenders are patient and do not exercise their right to demand early repayment of debt, Magellan has the cash it needs to cover its current expenses and invest in its business, the company says in a statement about the NYSE delisting notice.

"The company's cash flow from operations is positive," Magellan says. "The company remains current on all payments to its providers, vendors, suppliers and lenders."

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