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Management Newsletter Article | February 1, 2003

Magellan Considers Filing Chapter 11

By Market Intelligence Team

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst Industry News On January 14, 2003, Magellan Health Services, Inc. filed a form 10-K with the Securities and Exchange Commission disclosing that it may reorganize and restructure under Chapter 11 of the federal bankruptcy code if it did not receive an extension on debt agreements. Magellan had waivers on their credit agreements, but they expired January 15, 2003, and were not extended. According to an article in the Baltimore Business Journal, problems arose with the credit agreements because Magellan is trying to convince the State of Tennessee to withdraw . . .

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