NU Online News Service, Aug. 1, 2003, 4:24 p.m. EDT – Magellan Health Services Inc., Columbia, Md., says Deutsche Bank A.G., Frankfurt, has agreed, under certain conditions, to provide $230 million in credit to help the company escape from Chapter 11 reorganization proceedings.
Magellan runs mental health and substance abuse treatment programs for one-quarter of all U.S. residents.
The company filed for protection from creditors in March in an effort to restructure debt left over from years when it ran up large losses.
A Canadian investment company, Onex Corp., Toronto, has agreed to invest $285 million in Magellan.
But the new credit facility “will provide reorganized Magellan with more favorable terms and greater financial flexibility than it would have had under the previously contemplated credit facility,” Magellan says.