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.
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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.