NU Online News Service, March 12, 2003, 10:19 a.m. EST – Magellan Health Services Inc., Columbia, Md., says it has received permission from the U.S. Bankruptcy Court in New York to honor all pre-Chapter 11 obligations to employees, providers and customers in the ordinary course of business.

Magellan, a company that administers mental health coverage for one-quarter of all U.S. residents, filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code Tuesday.

Magellan also filed a reorganization plan. The company says it has approval for the plan from its major creditors and enough cash to fund current operations.